ALTAN Redes, the Mexican consortium in charge of rolling out the country’s open access 700MHz wholesale network, has been bailed out by the Mexican government after running into financial difficulties. Late last week President Andres Manuel Lopez Obrador announced that the government had signed an agreement to become the majority stakeholder in ALTAN Redes, which filed for bankruptcy in 2021, and now the company has shared details of the financial arrangement.
As per a statement on the ALTAN Redes website, the company will receive a USD388.1 million cash injection, of which USD161.0 million will be provided by the Mexican Development Bank. Suppliers will loan the company USD166.6 million, shareholders will stump up USD50.5 million and clients will commit USD10.0 million. Reuters clarifies that the debt will be converted into new shares in the public-private partnership (PPP) that will be majority owned by the Mexican state.
The statement adds: ‘With the support of all creditors, progress is being made to submit an agreement within the commercial bankruptcy process for authorisation by the judiciary, with the aim of strengthening the viability and continuing with the deployment of the network’s national coverage. ALTAN Redes, in charge of deploying and operating Red Compartida, remains a public-private partnership, exemplifying the importance of synergy and cooperation between the private sector and the government of Mexico in strategic issues, such as the transformation of the telecommunications sector.’