Fixed-line operator Maxcom Telecomunicaciones looks set to exit bankruptcy protection after a US court endorsed its pre-packaged Chapter 11 plan of reorganisation.
Under the plan Maxcom will complete a recapitalisation and debt restructuring to cut…
Fixed-line operator Maxcom Telecomunicaciones looks set to exit bankruptcy protection after a US court endorsed its pre-packaged Chapter 11 plan of reorganisation.
Under the plan Maxcom will complete a recapitalisation and debt restructuring to cut costs. Once the plan has been enacted, the Mexican telco expects to exit Chapter 11 during early autumn.
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.
Ventura Capital Privado has agreed to inject US$45m into the business and will take control of it. Maxcom said the new capital would allow it to upgrade and expand its network.
In August the private equity firm, together with a banking institution and the co-founders of Ventura, offered to purchase all of the distressed operator’s series A common stock at a price of Ps0.96 per share, all of its outstanding ordinary participation certificates at Ps2.90 each, and all of its outstanding American depository shares at a price of Ps20.30 per ADS. The offer, which was approved by a judge earlier that month, expires on 26 September.
Ventura has retained Vace Partners as its financial adviser and Paul Hastings and Jones Day as its US and Mexican legal advisers respectively.
Lazard and Alfaro, Davila y Rios are financial advisers to Maxcom. Kirkland & Ellis is its US legal adviser and Santamarina y Steta its Mexican legal adviser.
