Iusacell receives acceleration notice on 10% notes

By Carlise Newman

Chicago, Sept. 11 - Grupo Iusacell Celular SA de CV received a notice of acceleration on its $150 million of 10% senior secured notes due 2004 from an informal committee of noteholders.

Iusacell's continuing failure to make a scheduled $7.5 million interest payment due July 15 led to the acceleration, the noteholders said.

Members of the informal committee, which is comprised of several institutional fund managers holding $77.0 million or 51.3% of notes, declared that the entire unpaid principal balance and all accrued interest, including default interest, was immediately due and payable.

The acceleration notice required 25% of holders in order to be valid.

"The holders of the 2004 notes are concerned by Iusacell's ongoing failure to present any plan to meet its obligations to its stakeholders," said Alan Feld, an attorney with Manatt, Phelps & Phillips, a spokesperson for the committee.

"Furthermore, we understand that Iusacell has made debt service payments to certain other of its creditors while in default under the notes. Although it remains the goal of the committee to establish a constructive dialogue which will lead to a fair outcome for all stakeholders, members felt these actions compelled them to begin to pursue other remedies to protect their interests."

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