Iusacell, Creditors Finalize US$350mn Restructuring"

Mexican mobile holding company Grupo Iusacell has executed a US$350mn debt restructuring program negotiated under Mexican bankruptcy laws and is close to completing the process, the company said in a statement.

The company signed an agreement, known as a Convenio Concursal, with creditors representing approximately 90% of its total debt.

Iusacell now awaits consent of the conciliator appointed by the local bankruptcy monitoring agency Ifecom to submit the agreement for approval by a Mexican judge. Upon the court's approval Iusacell's restructuring process will be complete.

The agreement is based on a previously announced restructuring agreement, whereby Iusacell will exchange US$350mn in 14.25% notes due 2006 for US$175mn of new notes due 2013, bearing interest of 10% per annum. The restructuring agreement also includes the cancellation of any default interest due and payable under the 2006 notes.

In total Iusacell owes 5.93bn pesos (US$540mn) to creditors, mostly in the form of bonds issued in the US.

The company is also negotiating an exchange offer for notes and loans worth US$416mn, consisting of bank loans worth US$190mn and US$76mn, and senior notes worth US$150mn.

This debt requires separate negotiation and is taking longer than the US$350mn exchange, Iusacell's investor relations office told BNamericas.

BNAmericas.com"

Posted to the site on 31st August 2006