United Pan Europe fails to pay coupons in grace period, obtains bank waiver

New York, March 4 - United Pan-Europe Communications NV said it failed to make a total of €113 million of coupon payments due Feb. 1 within the grace period and added that it has obtained a waiver of the default on its bank credit facility created by its failure to make the note interest payments.

Interest payments missed were on the Amsterdam, Netherlands broadband company's 10 7/8%

senior notes due 2009, 11¼% senior notes due 2010 and 11½% senior notes due 2010.

While the bank waiver is in effect, United Pan-Europe said it will negotiate with bondholders on its proposed recapitalization.

The waivers are from lenders under the company's €4 billion senior secured credit facility, from United GlobalCom, holder of its exchangeable loan, and lenders on its revolving credit facility.

The waivers run through June 3, 2002.

The borrower for the senior secured credit facility is the company's UPC Distribution Holding BV subsidiary and the agent for the facility is TD Bank Europe Ltd. and Toronto Dominion (Texas), Inc.

Under terms of the waiver, Belmarken Holding BV contributed €100 million in cash to UPC Distribution Holding BV. United Pan-Europe is allowed to draw up to €100 million in advances during the waiver period.

The revolving credit facility has the company's majority-owned subsidiary EWT Elektro & Nachrichtentechnik GmbH as borrower and is with facility agent and security agent The Royal Bank of Scotland plc.

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