The NYSE halted trading on Wednesday August 22, 2001 due to the Company's news events and has not opened trading in the security since that date as the NYSE has evaluated the Company's listing status in light of these developments. On October 8, 2001, the Company further announced, in accordance, with its other prior news releases and its previously distributed August 10, 2001 Proxy Statement that, while the Company is free to pursue strategic alternatives, it has filed various proposals with the Chilean Courts in connection with its ongoing restructuring efforts for the Company and its principal subsidiary, Chilesat S.A. ("Chilesat"). The Company is seeking the approval of the Courts, its shareholders and creditors for the proposals in the upcoming weeks. If these proposals become effective they would grant the Company and Chilesat judicial protection from its financial creditors and if adopted in their current form and no viable strategic alternative is found, would constitute in effect a plan for the orderly disposition of the Company's interest in Chilesat and the liquidation of all of the Company's other assets. However, if the Company's shareholders do not approve these proposals and the Company and its creditors do not otherwise reach an alternative agreement, the Company and Chilesat may be compelled, by Chilean law, to declare their own bankruptcies.
Given the currently disclosed information the NYSE will monitor the Company's continued listing status and its financial conditions in light of these on going developments. The NYSE will resume trading and continue to review these events in the near term as the Company currently complies with the NYSE's minimum quantitative standards for market capitalization, stockholders' equity and share price.
The NYSE, however, is not limited by the quantitative standards, rather, it may make an appraisal of, and determine on an individual basis, the suitability for continued listing of an issue in light of all pertinent facts whenever it deems such action appropriate, even though a security meets or fails to meet any enumerated criteria.
The NYSE noted that it may, at any time, suspend a security if it believes continued dealings in the security on the NYSE are not advisable.
