Mexican fixed-line operator Maxcom Telecomunicaciones has reached an agreement with creditors to restructure debt and be sold to a private equity firm.
As part of the Chapter 11 bankruptcy plan Ventura Capital Privado will offer to buy 100% of the…
Mexican fixed-line operator Maxcom Telecomunicaciones has reached an agreement with creditors to restructure debt and be sold to a private equity firm.
As part of the Chapter 11 bankruptcy plan Ventura Capital Privado will offer to buy 100% of the company for Ps2.90 (US$0.22) per share and put US$45m on to Maxcom’s balance sheet.
The investor pulled out of a previous deal to buy Maxcom for Ps2.90 in April. That offer was conditional upon bondholders agreeing to exchange their 11% senior notes due next year, but a satisfactory arrangement could not be reached.
Bondholders have now agreed to tender their 2014 notes in exchange for US$200m step-up notes due 2020, according to Maxcom. The step-up notes will bear interest at 6% until 2016, then 7% from 2016 to 2018, and finally 8% up until 2020.
Maxcom has struggled to compete in the Mexican market against the mite of Carlos Slim’s Telmex, which has an 80% fixed-line market share. However that monopoly may be coming to an end. Last month Mexico signed reforms into law designed to end America Movil’s dominance in the wireless and fixed markets. Should they be enacted effectively Maxcom may have a brighter future.
Lazard and Alfaro, Davila y Rios are financial advisers to Maxcom, which offers voice, internet and cable services.
Kirkland & Ellis is its US legal adviser and Santamarina y Steta is its Mexican legal adviser.
Cleary Gottlieb Steen & Hamilton and Cervantes Sainz are advising the ad hoc committee.
Ventura has retained Vace Partners as its financial adviser and Paul Hastings and Jones Dayas its US and Mexican legal advisers respectively.
