Iusacell signs restructuring agreement with creditors

New York, Aug. 28 - Grupo Iusacell, SA de CV said it signed the restructuring agreement with creditors holding 90% of its debt.

The company expects to submit the executed convenio concursal for approval to a Mexican judge in the Juzgado Septimo de Distrito en Materia Civil del Primer Circuito. Submission also needs consent of the conciliator appointed by the Federal Institute Specializing in Concursos Mercantiles (Instituto Federal de Especialistas en Concursos Mercantiles - Ifecom).

The restructuring will be complete when the court approves the submitted convenio concursal.

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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