Brazilian telenovelas - the South American equivalent of soap opera - are not noted for their strong take on reality. Fantasy is more their stock in trade.
Bondholders of pay TV operator TV Filme could therefore be forgiven for thinking they had stepped into a telenovela script when they received a letter offering to buy their bonds back at 15% of their face value.
Things are not going well in the Brazilian pay TV business with high upfront costs, lots of competition and now, following the free float of the real, an economic recession looming. But this is just the beginning and bondholders would hardly be preparing to quit without waiting for future instalments (unlike soaps, telenovelas do not drag on for ever but have a definite conclusion).
Unsurprisingly the holders of the $140 million, 12.875% notes due in 2004 gave the thumbs down to both this offer and an improved one of 25%. With only 0.2% of minimum tender condition of $100 million taken up by January 5, it's not surprising that the offer was withdrawn three days later.
Moody's, however, did adjust its set - TV Filme was one of five Brazilian pay TV operators whose bonds were downgraded in the wake of the real crisis.