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Exhibit 99.1
TRANSTEL S.A. MISSES INTEREST PAYMENT ON SENIOR NOTES
Cali, Colombia, December 4, 2000 - TRANSTEL S.A. today announced that it
has missed a scheduled interest payment of $9.375 million on its 12 1/2% Senior
Notes due 2007, with a principal amount of $150 million. The payment was due on
November 1, 2000, and the 30-day grace period expired on December 1, 2000.
Penalty interest began accruing at an additional 2% on the overdue installment
of interest on November 1, 2000.
The indenture governing the Senior Notes provides that the indenture
trustee or the holders of at least 25% in principal amount of the Senior Notes
may accelerate the Senior Notes. Transtel is not aware of any action by either
the indenture trustee or the noteholders to accelerate the Senior Notes.
Transtel has been in contact with certain noteholders regarding possible
alternatives. There can be no assurance that such discussions will result in a
consensual resolution. Transtel is still endeavoring to secure the funds to make
the interest payment.
Transtel is the largest private telephone company in Colombia, providing
telephone services to both business and residential subscribers. Transtel
currently owns and operates local telephone systems serving eight cities, with
an aggregate population of approximately 3.1 million people, primarily located
in the southwestern region of Colombia.
Contacts:
Guillermo Lopez
Transtel S.A. International
(011 572) 680-8801
Kelly Keisling
Golin/Harris International
(212) 697-9191
