Fintech acquires majority of bonds of Mexico's Iusacell, subsidiary

By Jennifer Chiou

New York, March 11 - Fintech Investments Ltd. announced that it has acquired roughly 98% of the senior floating-rate first-lien notes due 2011 issued by Grupo Iusacell, SAB de CV and about 92% of the 10% senior subordinated second-lien notes due 2012 issued by subsidiary Grupo Iusacell Celular.

In addition, Fintech has also staked claim to about 76% of the 10% senior secured notes due 2013 issued by parent Grupo Iusacell.

In a news release, Fintech said that it believes the lock-up agreements are terminable, adding that it intends to engage in good faith discussions regarding a revision of the terms of the existing pre-packaged plans in the concurso mercantil proceedings that are pending in Mexico for the Iusacell companies.

The release added that the companies intend to explore potential alternative restructuring proposals, including a potential capitalization of debt into restricted equity with limited minority rights, subject to holder approval.

Iusacell is a cell phone company based in Mexico City.

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