6-K 1 zk41017.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of October 2004 BARAK I.T.C. (1995) - THE INTERNATIONAL TELECOMMUNICATIONS SERVICES CORP. LTD. -------------------------------------------------------- (Translation of registrant's name into English) 15 Hamelacha Street, Rosh Ha'ayin 48091, Israel -------------------------------------------------------- (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F [_] Form 40-F [_] Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes [_] No [X] SIGNATURES 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, thereunto duly authorized. BARAK I.T.C. LTD. By: /s/ Larry Akerman -------------------------------- Larry Akerman CFO Date: October 04, 2004 BARAK CONTEMPLATES NOTE RESTRUCTURING ------------------------------------------------------ Rosh Ha'Ayin, Israel, October 3 , 2004 -- Barak I.T.C. (1995) - The International Telecommunications Services Corp. ("Barak") announced today that it is considering the implementation of a program to restructure the indebtedness evidenced by its 12 1/2% Senior Subordinated Discount Notes due 2007 (the "Notes"). As of the date hereof, approximately $122 million aggregate principal amount of the Notes is outstanding, excluding Notes held by Barak. Barak stated that, based upon its current rate of cash flow and financial needs, and in light of the ongoing competition in the international long distance industry, and considering the difficulties it may encounter to repay its indebtness pursuant to the notes from its internal resources , Barak intends to propose and implement a plan to restructure the indebtedness evidenced by the Notes as quickly as possible. The program may involve, among other measures, an extension of the Notes' scheduled maturity date, a reduction in the principal amount of the Note debt and/or a reduction in the rate at which interest is payable on the Notes. The program's implementation may include among other measures, one or more amendments to the indenture under which the Notes are outstanding, a voluntary offer to exchange one or more new Barak securities for outstanding Notes, and/or debt relief under applicable law. Barak further noted that it has hired professionals to advise the company with respect to the Note restructuring, has met with a group of holders of a substantial amount of the Notes and has decided to form a steering committee of Noteholders with which to negotiate the terms of the Note restructuring.

Exhibit No. Exhibit ----------- ------- 1 Condensed Interim Statement of Operations and Condensed Interim Statement of Cash Flows, and Condensed Balance Sheet

FOR THE THREE FOR THE THREE FOR THE THREE MONTHS ENDED MONTHS ENDED MONTHS ENDED JUNE 30, 2003 JUNE 30, 2004 JUNE 30, 2004 CHANGE (UNAUDITED) (UNAUDITED) (UNAUDITED) ADJUSTED IN TERMS CONVENIENCE OF NIS DECEMBER TRANSLATION INTO 2003 (IN MILLIONS) REPORTED AMOUNTS $ MILLIONS % ------------------ ------------------ ------------------ ------------------ REVENUES 161.6 161.0 35.8 (%) EXPENSES 130.9 145.0 32.2 11% OPERATING PROFIT 30.7 16.0 3.6 (48%) FINANCIAL INCOMES (EXPENSES), NET 16.7 (6.6) (1.5) NA OTHER EXPENSES 1.8 - - NA PROFIT FOR THE PERIOD 45.6 9.4 2.1 (79%) EBITDA 43.7 27.0 6.0 (38%)

FOR THE SIX FOR THE SIX FOR THE SIX MONTHS ENDED MONTHS ENDED MONTHS ENDED JUNE 30, 2003 JUNE 30, 2004 JUNE 30, 2004 CHANGE (UNAUDITED) (UNAUDITED) (UNAUDITED) ADJUSTED IN TERMS CONVENIENCE OF NIS DECEMBER TRANSLATION INTO 2003 (IN MILLIONS) REPORTED AMOUNTS $ MILLIONS % ------------------ ------------------ ------------------ ------------------ REVENUES 323.0 353.6 78.6 9% EXPENSES 267.8 318.8 70.9 (19%) OPERATING PROFIT 55.2 34.8 7.7 (37%) FINANCIAL INCOMES (EXPENSES), NET 11.4 (46.4) (10.3) NA OTHER EXPENSES 1.8 68.1 15.1 (3683%) NET PROFIT (LOSS) FOR THE PERIOD 64.8 (79.7) (17.7) NA EBITDA 80.1 58.2 12.9 (27%)

DECEMBER 31,2003 JUNE 30,2004 JUNE 30,2004 (AUDITED) (UNAUDITED) (UNAUDITED) ADJUSTED IN TERMS CONVENIENCE OF NIS DECEMBER TRANSLATION INTO 2003(IN MILLIONS) REPORTED AMOUNTS $ MILLIONS ---------------- ---------------- ---------------- CASH 58.9 46.1 10.3 OTHER CURRENT ASSETS 131.6 146.8 32.6 OTHER ASSETS, NET 311.5 242.8 54.0 ----- ----- ----- TOTAL ASSETS 502.0 435.7 96.9 CURRENT LIABILITIES 391.3 385.4 85.7 LONG TERM LIABILITIES 584.4 603.7 134.2 SHAREHOLDERS' EQUITY (473.7) (553.4) (123.1) ----- ----- ----- 502.0 435.7 96.9

FOR THE SIX FOR THE SIX FOR THE SIX MONTHS ENDED MONTHS ENDED MONTHS ENDED JUNE 30, 2003 JUNE 30, 2004 JUNE 30, 2004 (UNAUDITED) (UNAUDITED) (UNAUDITED) ADJUSTED IN TERMS CONVENIENCE OF NIS DECEMBER TRANSLATION INTO 2003 (IN MILLIONS) REPORTED AMOUNTS $ MILLIONS ----------------- ---------------- ----------------- CASH FLOWS FROM OPERATING ACTIVITIES 36.2 17.3 3.8 CASH FLOWS USED IN INVESTING ACTIVITIES (10.7) (10.4) (2.3) CASH FLOWS FOR FINANCING ACTIVITIES - (19.7) (4.4) BALANCE OF CASH AT BEGINNING OF PERIOD 11.2 58.9 13.1 ---- ---- ---- BALANCE OF CASH AT END OF PERIOD 36.7 46.1 10.3

Filing Compare · BARAK ITC 1995 INTERNATIONAL TELECOMMUNICATIONS SERVICES COR