TeleBermuda International Ltd. (TBI) lost $5.28 million, or $1.51 a share.

For the fiscal year ended December 31 the company had net revenue of $1.4 million, and expenses of $5.08 million, leading to a loss before interest, amortisation and taxes of $3.68 million.

In total since the company began operations in March 1996 the publicly-traded company has racked up a deficit of $8.35 million.

Company vice-chairman and general manager Jeff Conyers said the company is ahead of its original projection of turning a profit within three-and-a-half years.

As at December 31 the company had assets of $55 million, and liabilities of $43.7 million. Assets include the company's fibre optic-submarine cable connection which cost $44.88 million, and network and telecommunication equipment of $3.05 million.

Liabilities include accounts payable and accrued liabilities of $11.5 million, long-term debt of $30.12 million, and deferred revenue of $1.52 million.

In July 1997 TeleBermuda had a term loan agreement to borrow $25 million to finance capital expenditures. The principal outstanding at December 31 was $16.74 million. In the same date the company entered into a subordinated debenture agreement for $13 million. The principal outstanding on the loan was $13 million at the end of the year, and is due for repayment in 2002.

Subsequent to the end of the financial year the company took a further advance of $7.25 million on its term loan. In February and in March the company drew down advances of $200,000 and $500,000 on it revolving operating line of credit.

In April the company entered into an agreement with an unnamed third party to establish Rocom TBI Ltd. as a joint venture in the UK. Under the agreement TeleBermuda International (UK) Ltd. will be used for carrying on the operations of the joint venture. TBI has advanced almost $1 million as its part in funding the joint venture.

Both companies have also subscribed to about $1.56 million in non-interest bearing intercompany loans due for repayment in 2002.

TBI's other subsidiaries include US based TeleBermuda International, LLC and TeleBermuda International (Canada) Ltd. TeleBermuda International in the US holds the company's fibre optic landing license and facilities. The Canadian company provides management services.

In May the company signed an agreement to lease capacity on its cable to an unnamed third party for $8 million, of which $300,000 was paid on May 6. The remainder is due in annual installments of $2.7 million, $4 million, and $1 million.

The lease is for the operational life of TBI's fibre optic cable, estimated at about 25 years. A second lease of about $4 million, beginning on third year of the activation of the first lease, is also part of the agreement.

The company's officers and directors hold 29 percent of the 3.49 million common shares issued.

The company is holding its annual general meeting 10.45 a.m. at Waterloo House tomorrow.

Shareholders will be voting on a proposal for a corporate restructuring that will make the company a subsidiary of a new exempted company, GlobeNet Communications Group Ltd.

They will give up their shares for similar holdings in the new exempted company. The board is recommending the restructuring for the expansion of TeleBermuda beyond Bermuda.

The company is also in negotiations with Bermuda-based Global Crossing to sell its fibre optic link from Bermuda to the US. Ltd.

The deal will be made in exchange for cash and capacity on the Atlantic Crossing cable, completing TeleBermuda's vision of a direct link with Europe.

Earlier this year, Global Crossing began transmitting traffic through its undersea line between the US and Europe. The company is in the process of building the Pacific Crossing, a link between the US and Japan, and Mid-Atlantic Crossing, a link between New York, Bermuda, the Caribbean, Panama and Florida. Another link will connect California, Mexico and Panama.

TeleBermuda shares last traded at $7.50 on June 10.

The company was formed as a competitor to Cable & Wireless in Bermuda to provide long distance service when competition was introduced in the local market.

Jeff Conyers