Iusacell extends bond swap deadline

19 May 2006

Mexican mobile and long-distance operator Grupo Iusacell has extended its offer to swap USD350 million-worth of notes for senior secured USD175 million bonds as part of its debt restructuring plan announced earlier this year. Iusacell plans to exchange outstanding notes due in 2006 for new notes due 2013. Including interest forgiveness, the restructuring will write down more than half of the debt that local businessman Ricardo Salinas Pliego took on when he acquired 74% of Iusacell for USD7.4 million from Verizon and Vodafone in 2003. The exchange offer was originally due to expire on 18 May, but has this now been extended to 1 June; the extension comes at the request of creditors.

Mexico, Iusacell (inc. Unefon)