Iusacell asks court to dismiss involuntary Chapter 11 case because petitioners improperly mailed notice

By Caroline Salls

Pittsburgh, Aug. 16 - Grupo Iusacell Celular SA de CV asked the U.S. Bankruptcy Court for the Southern District of New York to dismiss the involuntary Chapter 11 case brought against it on the grounds that the petitioners improperly served notice of the filing to the company by mail, according to a Wednesday court filing.

In the motion, Iusacell said the involuntary petitioners, including Gramercy Emerging Markets Fund, Pallmall LLC and Kapali LLC, were not happy that the company planned to restructure its debt through a concurso mercantil proceeding in Mexico.

Iusacell said it will have more to say about the petitioners' attempt to circumvent the Mexican proceedings if the involuntary case is allowed to proceed, but currently will ask the case be dismissed on the service method issue.

Rather than using the procedures outlined in the Hague Convention, to which Mexico is a signatory, to serve Iusacell, the company said the petitioners have attempted to short cut service of process by having the court clerk send Iusacell a copy of the summons and involuntary petition by registered mail.

According to the motion, by ratifying the Hague Convention, Mexico made clear that it does not permit service of process by mail on a Mexican corporation, rendering the petitioners' method of service "plainly insufficient."

A hearing on dismissing the case is scheduled for Sept. 21.

Iusacell is a Mexico City cell phone company. Its Chapter 11 case number is 06-11599.

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