Banking & Business

Dec 1, 2002

Globopar Defaults

Globopar, the financial arm of Brazilian media conglomerate, Organizações Globo, has defaulted on $1.5 billion in debt, because of Brazil's falling currency and a stagnant advertising market. Rio de Janeiro's Marinho family, which owns Globopar, has injected $170 million in the company and its subsidiaries over the last six months. In spite of this, the company announced in November that its dollar-denominated debt had become increasingly difficult to pay as the realplunged and revenues remained depressed. The company has hired Goldman Sachs and Houlihan Lokey Howard  &  Zukin Capital to advise on restructuring the debt. São Paulo-based Unibanco will act as local advisor to Globopar. In September, Philippe Reichstul, the former CEO of state-owned oil company Petrobras, resigned as president of Globopar after only six months in the job. Globopar CFO Ronnie Moreira took over after Reichstul's exit. Globo owns the dominant TV Globo network, a chain of local radio stations, a news magazine...

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