Iusacell hit by debt demand

5 May 2005

The troubled Mexican mobile operator Iusacell has revealed that creditors are insisting on immediate repayment of a USD350 million debt on which the company has failed to pay interest since June 2003. An Iusacell press release says that it received notice on 29 April that “an unspecified percentage of noteholders have requested the acceleration of principal and accrued interest on the notes”. The notice was served by the Bank of New York, trustee for the USD350 million worth of 14.25% notes which are due December 2006. Iusacell, which had 1.6 million mobile subscribers at the end of March, has been attempting to restructure its massive debts. The company is majority owned by Mexican businessman Ricardo Salinas Pliego.

Mexico, Iusacell (inc. Unefon)