For the first time ever Net (ex-Globo Cabo) has disclosed details of its debts to suppliers. The information is in the share issue prospectus published Friday, July 19. Accounts payable breaks down into 59 million reals for equipment and 229m reals for programming, mostly Globosat. These numbers are as of June 30, 2002. At the end of the first quarter, they were 34m reals and 113m reals respectively. Net Brasil, the main supplier, received 361.1m reals in 2001, 271.6m reals in 2000 and 149.7m reals in 1999. According to the prospectus, Net currently pays Net Brasil a management fee of 0.43 reals per subscriber. The document mentions several risks intrinsic to the capitalization process. One of these risks is termination of the exclusivity agreement with Net Brasil. Another is termination of the exclusivity agreement with Globosat if Globopar ceases to be Net?s controlling shareholder. The prospectus doesn?t say whether or how this could happen.
Capitalization
