A source very close to BCP assured TELETIME News on Wednesday, December 11, that while trying to sell the B-band cellular carrier, BellSouth could still apply to the Brazilian Government for a review of BCP?s license in order to receive some form of compensation for the very high fee paid at auction. Embratel is rumored to be pursuing this strategy too. ?In light of its creditors? inflexible attitude on debt reduction, BCP could try to recoup at least part of the 2.4 billion Brazilian Reals it paid for the license to metropolitan São Paulo,? meditates the source, noting that a BellSouth subsidiary in Colombia has applied to a local arbitration tribunal to have its contract reviewed. According to Dow Jones Newswires, citing the El Tiempo newspaper, the company wants part of its license fee to be refunded because its 1994 bid was based on official economic growth projections that have turned out to be wildly exaggerated (Colombia fell into recession in 1998). The authorities in both Colombia and Brazil have so far refused to countenance any such review. As for the mooted sale of BCP, the source says talks have so far been inconclusive owing to difficulties in agreeing on the price. It would have to be 1.6 billion US Dollars to cover existing debt. That?s not considered viable.
Crisis
