Newswires
Telemig Celular S.A. and Amazonia Celular S.A. Announce Commencement of Consent Solicitation
Telemig Celular S.A. ('Telemig') and Amazonia Celular S.A. ('Amazonia') announced today that they have commenced a solicitation of consents (the 'Consent Solicitation') from holders of outstanding 8.75% Telemig Notes due 2009 (the 'Telemig Notes') and 8.75% Amazonia Notes due 2009 (the 'Amazonia Notes' and, together with the Telemig Notes, the 'Notes'). The purpose of the Consent Solicitation is to amend certain provisions of the indenture governing the Notes (the 'Indenture') to address the technical default under financial ratios caused by Amazonia's recording of provisions with regard to contingent liabilities in connection with Imposto de Circulacao de Mercadorias e Servicos taxes ('ICMS Provisions') that are currently the subject of litigation with a few of the Brazilian states (the 'Proposed Amendments'). Each holder who consents to the Proposed Amendments will also be waiving (the 'Proposed Waivers') certain past defaults and events of default under the Indenture associated with the ICMS Provisions.
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