AT&T Latin America Posts Widening 3Q Loss, Considers Bankruptcy

Communications Today, Nov 18, 2002

AT&T [T]-controlled AT&T Latin America [ATTL] reported a third-quarter loss of $532.3 million, or $4.48 a share, compared to a loss of $79.7 million, or 69 cents a share, a year ago. Revenue for the quarter was essentially flat at $39.9 million compared to $39.3 million a year ago. The company said it is in talks with potential investors and exploring options such as a sale of the company, but that it ultimately could file for bankruptcy. AT&T has said recently that it doesn't plan to offer the unit additional funding. This past month, AT&T Latin America said it anticipated a funding gap of as much as $40 million beginning in the fourth quarter and lasting through 2003 as economic conditions worsen in South America.

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