Seaborn Seeks Judicial Recovery for Seabras-1 Subsidiaries
Seaborn has filed a judicial recovery request for two subsidiaries responsible for the operation of the Seabras-1 submarine cable that links Sao Paulo with and New York, reports Teletime. According to the group, significant changes in the submarine telecom industry in recent years, as well as the deterioration of the Brazilian economy, have prevented the sustainability of the operation. This resulted in severe price falls on the Seabras-1 US-Brazil route, which were much lower than expected, thus making debt repayment difficult.
Seabras 1 Bermuda and Seabras 1 USA are the two companies whose debt restructuring has been requested by the head office in a petition filed in a New York court. The current value of the debts in question amounts to USD 149.1 million. According to Seaborn, Seabras-1 customers will continue to be served normally and the request for judicial reorganisation will not affect the parent company’s activities.