Iusacell agrees debt deal

25 Jan 2006

Mexican mobile operator Iusacell has struck a deal to restructure all of its debt, hopefully putting an end to years of dispute with its investors. In May 2005 the troubled Mexican company revealed that creditors were insisting on immediate repayment of a USD350 million debt on which the company has failed to pay interest since June 2003. Iusacell, majority owned by Mexican businessman Ricardo Salinas Pliego, says it has reached a provisional agreement with creditors who represent more than half of the USD350 million debt, to exchange bonds for new debt. Its subsidiary Grupo Iusacell Cellular, has struck a similar agreement to restructure an additional USD416 million worth of debt. The company plans to launch the debt offer before 15 March, and hopes to free up close to USD200 million in cash in the process.

Mexico, Iusacell (inc. Unefon)