Netia reaches settlement on swaps
WARSAW, Poland - January 11, 2002 - Netia Holdings S.A. (the "Company" or "Netia") (Nasdaq: NTIA, WSE: NET), Poland's largest alternative fixed-line telecommunications services provider, today announced that a settlement had been reached between Netia's subsidiary, Netia Holdings III B.V., and JPMorgan Chase Bank regarding the cross-currency swap transactions entered into on July 31, 2000 and January 18, 2001. In late December, Netia had announced that it did not make the payment due on December 17, 2001 under the swap agreement of January 18, 2001, and that it was in discussions with JPMorgan Chase Bank as to the renegotiation of all swaps entered into with that bank.
The swap agreements were terminated by mutual consent of the parties, and the termination became effective immediately. The swaps were terminated due to a planned debt restructuring by the Company. As it has previously announced, Netia is engaged in discussions with its bondholders concerning a consensual reorganization of its balance sheet to reduce its debt and interest burdens.