SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported) January 8, 2003
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GENERAL MOTORS CORPORATION
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(Exact name of registrant as specified in its charter)
STATE OF DELAWARE 1-143 38-0572515
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
300 Renaissance Center, Detroit, Michigan 48265-3000
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (313)-556-5000
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ITEM 9. REGULATION FD DISCLOSURE
DIRECTV Latin America, LLC, a subsidiary of Hughes Electronics Corporation
(Hughes - GMH), announced that it has initiated actions to address its financial
and operational challenges. The release is as follows:
DIRECTV LATIN AMERICA INITIATES ACTIONS
TO ADDRESS FINANCIAL AND OPERATIONAL CHALLENGES
Company Retains AlixPartners To Assist With Restructuring
FORT LAUDERDALE, FL, January 8, 2003 - DIRECTV Latin America, LLC, the leading
direct-to-home satellite television service in Latin America and the Caribbean,
today announced that it has initiated discussions with certain programmers,
suppliers, lenders and business associates to address the Company's current
financial and operational challenges. The Company also announced that it has
retained AlixPartners, LLC, a leading turnaround and management services firm,
to assist with its restructuring initiative. Michael A. Feder, a principal at
AlixPartners, has been named Chief Restructuring Officer of DIRECTV Latin
America, reporting to Kevin N. McGrath, Chairman of DIRECTV Latin America.
DIRECTV Latin America is a Delaware limited liability company owned by DIRECTV
Latin America Holdings, a subsidiary of Hughes Electronics Corporation; Darlene
Investments, LLC, an affiliate of the Cisneros Group of Companies; and Grupo
Clarin.
"We are moving aggressively to implement a plan for DIRECTV Latin America that
is consistent with our overall objectives of enhanced competitiveness and
profitable growth," McGrath said.
"We have started discussions with certain programmers, suppliers, lenders and
business associates in an effort to resolve issues that have affected the
financial performance of DIRECTV Latin America in recent years, including
excessive fixed costs and a substantial debt burden during a time of economic
deterioration throughout Latin America," McGrath said. "There are some
significant contracts that need to be realigned with the realities of the
marketplace. We will also continue to encourage programmers and suppliers to
share directly and appropriately the risks of exchange rate fluctuation and
currency devaluation."
McGrath continued, "Our Company's current financial condition is unacceptable
and an effective solution must be executed urgently. Accordingly, if our
discussions do not result in a reasonable agreement in the near future, we would
consider other options available to the Company, including restructuring the
Company under Chapter 11 of the U.S. bankruptcy law."
The Company does not expect any of the actions it is currently taking or
considering to negatively impact its business operations in Latin America and
the Caribbean. There are no plans for any of the local operating companies to
seek court protection. Even if the U.S. parent (DIRECTV Latin America, LLC) does
seek court protection, the Company expects that the local operating companies
will continue normal operations.
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Over the past 18 months, in response to difficult conditions in the markets
where it operates, DIRECTV Latin America has concentrated on improving business
efficiencies and reducing its operating costs and cash requirements. Among other
actions, the Company has significantly reduced general and administrative
expenses and headcount, and eliminated all non-essential business activities and
capital expenditures.
"We remain firmly committed to continuing normal business operations in all of
our markets across Latin America and providing our customers with the best
service and widest array of entertainment options," McGrath said.
About AlixPartners, LLC
AlixPartners, LLC, a Delaware limited liability company
(www.alixpartners.com), is an internationally recognized leader in providing
hands-on, results-oriented consulting to solve operational, financial,
transactional and legal challenges for Fortune 1000 companies. It provides
services in performance improvement, turnaround and restructuring, financial
advisory and information technology. It has more than 170 professionals in its
Detroit, New York, Chicago, Dallas, London and Munich offices.
About DIRECTV Latin America
DIRECTV Latin America is the leading direct-to-home satellite television service
in Latin America and the Caribbean. Currently the service reaches more than 1.6
million customers in the region, in a total of 28 markets. DIRECTV is currently
available in: Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, El
Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto Rico, Trinidad
& Tobago, Uruguay, Venezuela and several Caribbean island nations.
DIRECTV Latin America, LLC is a multinational company owned by DIRECTV Latin
America Holdings, a subsidiary of Hughes Electronics Corporation; Darlene
Investments, LLC, an affiliate of the Cisneros Group of Companies, and Grupo
Clarin. DIRECTV Latin America has offices in Buenos Aires, Argentina; Sao Paulo,
Brazil; Cali, Colombia; Mexico City, Mexico; Carolina, Puerto Rico; Fort
Lauderdale, USA and Caracas, Venezuela. For more information on DIRECTV Latin
America please visit www.directvla.com.
HUGHES is a leading provider of digital television entertainment, broadband
services, satellite-based private business networks, and global video and data
broadcasting. The earnings of HUGHES, a unit of General Motors Corporation, are
used to calculate the earnings attributable to the General Motors Class H common
stock (NYSE: GMH).
NOTE: Hughes Electronics Corporation believes that some of the foregoing
statements may constitute forward-looking statements. When used in this report,
the words "estimate," "plan," "project," "anticipate," "expect," "intend,"
"outlook," "believe," and other similar expressions are intended to identify
such forward-looking statements and information. Important factors that may
cause actual results of HUGHES to differ materially from the forward-looking
statements in this report are set forth in the Form 10-Ks and 10-Qs filed with
the SEC by General Motors and HUGHES.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL MOTORS CORPORATION
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(Registrant)
Date January 9, 2003
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By
/s/Peter R. Bible
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(Peter R. Bible,
Chief Accounting Officer)
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