Investors seek injunction barring Mexico's Iusacell Celular from selling assets

By Reshmi Basu

New York, April 28 - Investors are seeking an injunction barring Iusacell Celular from selling assets, according to a company news release.

In January, some holders of the senior notes due 2004 filed a lawsuit, claiming that the company's subsidiary Iusacell Celular broke bond covenants.

Since then, the company has filed a motion to dismiss a portion of the complaint that called for the court to declare that holders are entitled to the benefit of liens senior to or at least equal in priority to liens held by creditors.

In response, the holders filed an amended complaint and are seeking injunctive relief barring the company from selling, transferring or encumbering the assets.

Iusacell Celular said it would respond to the complaint and ask for injunctive relief.

The company is a wireless cellular and PCS service provider in Mexico.

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