's debt is restructured, it is likely to issue equity, allowing other foreign investors to invest, in other Globopar
assets besides Net, including Editora Globo, the publishing company of O Globo, a major daily newspaper; Globo Cochrane, a printing company; and the production studio assets of TV Globo, the country's largest television network.
That forced influential ratings agency Standard & Poor's to lower the ratings of Globopar and its cash cow--broadcaster TV Globo, which guarantees part of the debt--from "B" down to "D," sinking Globo even deeper into the mire.
Net Servicos' debts are not consolidated with Globopar's $1.5 billion burden.
OG announced in June that the group's Globopar
will become a public company and will be renamed Globo S/A, which will consolidate the property of all the group's companies.
"The (country's) energy-rationing program, the Argentine crisis and the dollar exchange rate rise has affected the country as a whole, leading to a reduction in ad investment," Mauro Molchansky, CEO of Globo's holding company Globopar
, tells Variety.
In order to concentrate on its core media businesses, Globo sold off telecom equipment manufacturer Nec do Brasil, enabling holding company Globopar
to whittle its debt load down to $2.66 billion at the end of 1999, from nearly $3.9 billion at the end of 1998.
, holding company for the conglom, faxed Wall Street analysts with a rare riposte to a Bloomberg report that depicted Globo scrambling to raise cash for debt payments, firing staff and retreating from investments.
Leonardo Pereira, planning director at Globo holding company Globopar
, recently said Epoca would constitute one of their biggest investments over the next three years, along with pay TV and cellular telephony.