Mexico's Iusacell renegotiating foreign currency-denominated debt

By Caroline Salls

Pittsburgh, April 1 - Grupo Iusacell, SAB de CV is in talks to renegotiate its foreign currency-denominated debt, which has been affected by the strong devaluation of the Mexican peso versus the U.S. dollar and the current world economic slowdown, according to a company news release.

The company said it expects to reach favorable agreements soon.

In addition, as a result of the current situation, the company said one of its subsidiaries has temporarily suspended the service of its dollar-denominated obligations while the discussions take place.

In order to reach a comprehensive agreement in the shortest time possible, Grupo Iusacell has hired Hill Street Capital LLC as its financial adviser, according to the release.

Grupo Iusacell said it has improved its market position and continues its aggressive cost reduction plan.

According to the release, the company's peso-denominated revenues have had a positive track record that, combined with the current efforts to attain an optimal amortization structure of its debt, will allow it to further support its operations and results.

Iusacell is a cell phone company based in Mexico City.

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