Grupo Iusacell yet to renegotiate $150 million bond

Pittsburgh, June 14 - Grupo Iusacell SA de CV said it has not yet reached an agreement on with the holders of its $150 million 10% bonds due July 15, 2004 on restructuring or refinancing the debt, according to a news release.

As a result, the credit agreement of its subsidiary Grupo Iusacell Celular SA de CV could be accelerated to March 31, 2004.

Iusacell said in a release Monday that under the terms of the $266 million amended and restated credit agreement, if the notes were not refinanced by March 31, 2004 then the loan could be accelerated to that date.

Nonetheless, the company is continuing to work on the process of restructuring its debt, according to the release.

Iusacell's subsidiary failed to make the $33.2 million payment corresponding to the first amortization of principal on the credit agreement last week.

Grupo Iusacell is a Mexico City-based wireless communications provider.

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