Mexican fixed-line operator Maxcom Telecomunicaciones has filed for bankruptcy in Delaware after bondholders endorsed its recapitalisation and debt restructuring plan.
In a vote yesterday 93% of the holders of its 11% senior notes due 2014 favoured the…
Mexican fixed-line operator Maxcom Telecomunicaciones has filed for bankruptcy in Delaware after bondholders endorsed its recapitalisation and debt restructuring plan.
In a vote yesterday 93% of the holders of its 11% senior notes due 2014 favoured the plan, which will see a private equity firm take over 100% of the company.
Ventura Capital Privado will put US$45m on Maxcom’s balance sheet purchasing the telco at US$0.22 per share.
In a statement today Maxcom said it expects to emerge from Chapter 11 by early autumn, subject to approval from the US bankruptcy court.
As part of the recapitalisation bondholders agreed to tender their 2014 notes in exchange for US$200m step-up notes due 2020, which bear interest at 6% until 2016, then 7% from 2016 to 2018, and finally 8% up until 2020.
The mite of Carlos Slim’s Telmex, which has an 80% fixed-line market share, is a key reason why Maxcom has struggled to compete in the Mexican marketplace. But regulatory changes mean that the monopoly may be coming to an end. Earlier this year Mexico’s legislature signed reforms into law which have been created to clamp down on anti-competitive practices and challenge Slim’s dominance in the wireless and fixed markets.
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.
