A rescue deal to save Maxcom Telecomunicaciones has fallen through and now the Mexican operator could be chased by creditors.
Ventura Capital Privado agreed to buy the distressed telco in December for Ps764m (US$59m). The offer was contingent upon the…
A rescue deal to save Maxcom Telecomunicaciones has fallen through and now the Mexican operator could be chased by creditors.
Ventura Capital Privado agreed to buy the distressed telco in December for Ps764m (US$59m). The offer was contingent upon the successful completion of an offer to exchange Maxcom’s outstanding 11% senior notes due 2014 for new notes to be issued by the company.
However that exchange offer has failed after it was taken up by an insufficient number of bondholders. Subsequently the PE firm’s tender offer to buy Maxcom expired and Ventura said it would not extend the offer period.
In a statement the operator said: “In light of this outcome, Maxcom is considering all of its alternatives including, but not limited to, commencement of a Chapter 11 case or other restructuring proceeding.”
In a previous statement earlier in April Maxcom said bondholders and creditors could commence involuntary bankruptcy proceedings against it in Mexico or the US. It also said that if the exchange offer failed it would implement a restructuring.
Shares in Maxcom dropped by more than 18% following the announcement.
Maxcom offers voice, internet and cable services. Its share price has dropped more than 80% over the last five years.
