DirecTV Latin America Files for Chapter 11

20 March 2003

US satellite television giant DirecTV may be attracting multibillion-dollar bids, but its South American stablemate looks a far less appealing prospect.

DirecTV Latin America – a unit of General Motors-owned Hughes Electronics like its US namesake – has filed for Chapter 11 bankruptcy protection.

The move came after the broadcaster’s suppliers refused to agree to major concessions. DirecTV LA – which serves 1.6 million subscribers in over 25 countries – declared assets of $600 million (€568m; £386m) and debts of $1.6 billion.

The satellite firm hopes the bankruptcy court will allow it to cancel a contract with Walt Disney Company and a rights deal for the 2006 soccer World Cup.

Data sourced from: The Wall Street Journal Online; additional content by WARC staff