Alvarez & Marsal

Amidst a declining global telecommunications market in 2002, AT&T Corporation
withdrew financial support for its publicly traded subsidiary, AT&T Latin America
Corporation, which was suffering from overcapacity and negative EBITDA of approximately
$50 million. Concerned about the viability of the company and the possible impact on
recoveries, a group of secured creditors hired Alvarez & Marsal to represent their interests
and advise on viable options. In order to deliver a complete assessment of the situation,
Alvarez & Marsal visited AT&T Latin America operations in Argentina, Brazil, Chile,
Colombia and Peru to conduct due diligence and review the company’s business plan and
cash conservation initiatives. The Alvarez & Marsal team then worked with AT&T Latin
America’s advisors, providing input to the restructuring plan on the creditor group’s behalf.
When it became clear that AT&T could not grow without support, a sale process was
initiated. The result was a $200 million sale to Telmex – producing 100% recoveries, plus
interest, to the creditors.