Iusacell Extends US$350mn Debt Restructuring Deadline

Mexican mobile operator Iusacell has extended until June 1 the deadline for holders of its 14.25% bonds due this year to accept an exchange offer for 10% notes due in December 2013, Iusacell said in a statement.

The exchange plan relates to notes worth a total of US$350mn which will be exchanged for senior secured notes worth a total of US$175mn. The original deadline for this offer was May 18, and the extension comes at the request of creditors.

The exchange program is part of a debt restructuring deal the company reached in January this year.

Earlier this year Iusacell reached an agreement with 51% of creditors to restructure its debt of more than US$800mn. The bond exchange was originally due on March 15 but creditors agreed to grant Iusacell an extension for the exchange until April 19.

Besides the US$350mn notes exchange, Iusacell renegotiated a US$150mn loan it had defaulted on in 2004, plus a US$266mn secured syndicated loan, and has essentially reduced its debt by over US$300mn to approximately US$550mn.

BNamericas.com"

Posted to the site on 19th May 2006