Iusacell agrees with noteholders to put off start of exchange offer and consent solicitation to April 19

By Caroline Salls

Pittsburgh, March 20 - Grupo Iusacell, SA de CV said it has agreed with the majority of the holders of its $350 million of 14¼% notes due 2006 to postpone the launch of the exchange offer and consent solicitation to amend some terms and conditions of the existing notes and a waiver of events under the notes to April 19, according to a company news release.

Iusacell had previously hoped to launch the exchange offer and consent solicitation by March 15.

On Jan. 23, the company said it reached an agreement in principle with a majority of holders of the 14¼% notes to restructure their debt, including a possible exchange offer for the notes.

Under the agreement in principle for the 14¼% notes, $175 million of new 10% notes due Dec. 31, 2013 will be issued in exchange for the existing notes.

Iusacell will have the option to capitalize up to 40% of each interest payment, according to the release.

The new notes are expected to be secured by a pledge on Iusacell shares, representing between 28% and 34% of the company's fully diluted common stock.

The granting of the pledge will be subject to some terms and conditions.

Iusacell is a Mexico City cell phone company.

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