Billionaires Carlos Slim and John C. Malone Dig Deep to Save Chile’s VTR, But Doubts Remain
- Two shareholders agreed to inject up to 972.4 billion pesos
- Some remain concerned it won’t stave of debt restructuring
Photographer: Pedro Pardo/AFP/Getty Images
Billionaires Carlos Slim and John C. Malone fueled an impressive rally in the bonds of their Chilean telecommunications joint venture with a pledge to invest as much as $1.1 billion. Now the buzz is wearing off as investors turn back to the grim long-term outlook.
VTR Finance NV’s $483 million of bonds due 2028 have soared 11.1 cents on the dollar to 36.8 cents since the announcement was made on Dec. 26. Another $866 million of bonds with a higher ranking in the capital structure are now trading at about 59 cents on the dollar, up more than 10 cents in the same period.