Telstra 2002 Annual Report Download - page 250

Telstra Corporation Limited and controlled entities
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Notes to the Financial Statements (continued)
Controlled entities (continued)
Other (continued)
In February 2001, changes in Indonesian banking regulations required
MGTI to cash in currency hedges associated with the loan facility.
These hedges yielded a gain of $75 million (US$38 million), which was
applied against the principal of the loan.
Other
FOXTEL minimum subscriber guarantees
The Telstra Entity and its partners, News Corporation and Publishing
and Broadcasting Limited, and Telstra Media and its partner, Sky
Cable, have entered into agreements relating to pay television
programming with various parties. These involve commitments for
minimum subscriber fees. Due to joint and several liability under the
agreements, if News Corporation, Publishing and Broadcasting
Limited or Sky Cable fail to meet any of their obligations, the Telstra
Entity and Telstra Media would be contingently liable to the extent of
those failures. Refer note 20 for details of minimum subscriber
guarantee commitments.
ASIC deed of cross guarantee
A list of the companies that are part of our deed of cross guarantee
appear in note 23. Each of these companies (except Telstra Finance
Limited) guarantees the payment in full of the debts of the other
named companies in the event of their winding up. Refer to note 23 for
further information.
21. Contingent liabilities and contingent assets (continued)