Iusacell receives letter from Fintech indicating debt may be accelerated

By Carlise Newman

Chicago, July 23 - Grupo Iusacell SA de CV said Wednesday that on July 22 its principal shareholders Verizon Communications Inc. and Vodafone Americas BV received a letter from Fintech Advisory Inc. threatening to accelerate the company's debt if a rival bid goes ahead.

Fintech stated that if the tender offer by Movil Access SA de CV, a wholly-owned subsidiary of Biper SA de CV, for all of the outstanding shares of capital stock of the company, is consummated, "we and other creditors will have no choice but to accelerate the company's debt to protect our interests."

In the letter Fintech expressed disappointment with the principal shareholders' decision not to enter into discussions with Fintech and invited the principal shareholders to meet with Fintech, Iusacell said.

The letter also stated that Fintech expected to begin offers in Mexico and the United States to acquire 100% of the outstanding shares of capital stock of the company, and was prepared to materially increase its offer price if Verizon and Vodafone participated in the tender offer.

Iusacell is a Mexico City based wireless provider

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.