EXHIBIT 99.1
CONTACTS: HERMANO ALBUQUERQUE
Chief Executive Officer
Phone: 011-55-61-314-9904
E-mail: [email protected]
FOR IMMEDIATE RELEASE
ITSA LTD. ANNOUNCES SUCCESSFUL TV FILME, INC. REORGANIZATION
BRASILIA, Brazil, (July 24, 2000) - ITSA Ltd., a Cayman Islands company
(the "Company") and successor to TV Filme, Inc., a Delaware corporation, today
announced that the debt restructuring under the plan of reorganization of TV
Filme was successfully completed. Under the plan, holders of TV Filme's
outstanding 12-7/8% senior notes received, in exchange for their notes, $25
million in cash, 80% of the new common equity of ITSA Ltd. and $35 million
aggregate principal amount of 12% senior notes issued by ITSA Ltd.'s Brazilian
subsidiary. Shareholders of TV Filme received 5% of the new common equity of
ITSA Ltd. and management of TV Filme and its operating subsidiaries received 15%
of the new common equity of the Company.
Hermano Studart Lins de Albuquerque, Chief Executive Officer of ITSA
Ltd., said, "We are pleased to report the completion of the restructuring of TV
Filme, Inc. This restructuring has enabled TV Filme to reduce significantly its
long term debt and, thus, has provided ITSA Ltd. with a solid financial footing
on which to grow as the successor company. We believe the resulting enterprise
will be a stronger competitor in the Brazilian telecommunications market it
serves, benefiting customers, employees and shareholders."
Headquartered in Brasilia, Brazil, ITSA Ltd., successor company to TV
Filme, Inc., is a leading provider of subscription television, data and internet
services in several markets in Brazil. The Company holds wireless cable licenses
in the cities of Brasilia, Goiania, Belem and Campina Grande, Bauru, Caruaru,
Franca, Porto Velho, Presidente Prudente, Belo Horizonte, Vitoria and Uberaba,
which together comprise over 3.1 million households. At present, the Company
intends to report its annual operating results in U.S. dollars and to prepare
its annual financial statements in accordance with U.S. generally accepted
accounting principles.
The matters discussed in this release include forward-looking
statements that involve risks and uncertainties, including risks detailed in TV
Filme, Inc.'s reports previously filed with the Securities and Exchange
Commission and risks that may be detailed from time to time in reports that may
be filed with the Securities and Exchange Commission by the Company. The Company
undertakes no duty to update such forward-looking statements.
