February 25, 2004
Court agrees with Willkie client Raven Media that DirectTV Latin America had improperly subordinated its roughly $190 million unsecured claim and that Hughs later acquired the claim in a private deal not disclosed in the filing.
On February 26, it was reported that bankrupt satellite TV provider DirectTV Latin America LLC has emerged from chapter 11 with its parent company, Hughs Electronics Corp., retaining its approximate 80% ownership interest. It is receiving $350 million in exit financing. As noted in the February 26 edition of The Daily Deal (online), Willkie partners Lawrence Kamin, Alan Lipkin and Jeffrey Hochman represented Raven Media, a wholly owned subsidiary of Argentine communications company Grupo Clarin SA, which owned a 4% stake in the bankrupt company and successfully objected to its plan to wipe out Raven’s claim. The judge agreed with Raven that DirectTV Latin America had improperly subordinated its roughly $190 million unsecured claim and that Hughs later acquired the claim in a private deal not disclosed in the filing.
