Iusacell restructuring process advances, hopes to finalize plan soon

By Caroline Salls

Pittsburgh, Aug. 17 - Grupo Iusacell, SA de CV said it hopes the restructuring agreement with the majority of its creditors will be legally finalized soon, according to a company news release.

The company said about 90% of its creditors have confirmed their support of the plan of reorganization by means of the exchange offer and consent solicitation that expired on June 1.

In addition, the judge in the company's concurso mercantil Mexican proceeding issued a declaration that allows Iusacell to enter a new phase toward completing its restructuring.

The company said it expects to soon execute the corresponding plan of reorganization to be submitted to the Mexican court.

As a result, Iusacell has appointed various counsels, including Everardo Joaquin Espino, Enrique Gutierrez Flores, David Pablo Montes Ramirez and Ivan Sanchez Montero, to coordinate the judicial proceedings.

Iusacell said it believes that the high rate of plan approval signifies a clear confidence in the company's management.

As previously reported, the restructuring consists of an exchange of $350 million of the company's 14¼% notes due 2006 for $175 million of new notes due 2013 that will bear interest at an annual rate of 10%, with semi-annual interest payments in arrears, including the option for Iusacell to capitalize up to 40% of each interest payment.

Iusacell is a Mexico City cell phone company. It had an involuntary Chapter 11 case filed against it in the U.S. Bankruptcy Court for the Southern District of New York on July 14. Its Chapter 11 case number is 06-11599.

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