Iusacell files for bankruptcy

20 Dec 2010

Mexican mobile network operator Iusacell has filed for a pre-arranged bankruptcy and for the second time in four years is looking to agree terms with its creditors for a restructuring plan, Reuters reports. It is understood that a judge will likely rule on whether to begin the bankruptcy proceedings next week, the report says, citing Gricelda Nieblas, head of the Federal Institute of Bankruptcy Specialists, a part of the judicial branch.

According to TeleGeography’s GlobalComms Database, in March 2009 with its total debt standing at MXN12.5 billion (USD952 million) the company said it had begun talks with bondholders with a view to once again renegotiating its dollar-denominated debt due to the increasing weakness of the peso compared to the US currency. By September 2009, and with MXN2.3 billion in debts due to mature at the end of that month, reports suggested that it would file for bankruptcy at that date. In the event, in a move widely viewed as a bid to reduce costs, in December 2009 Iusacell said it was considering delisting from the Mexican stock exchange, and the following month it was confirmed that the company’s shareholders had approved the delisting plan.

Mexico, Iusacell (inc. Unefon)