Iusacell starts soliciting consents for debt restructuring

New York, April 18 - Grupo Iusacell, SA de CV said it has begun soliciting consents to exchange its $350 million of 14¼% notes due 2006 for new notes.

The company is offering 10% senior secured notes due 2013 in exchange and is also seeking to amend the indentures for the 14¼% notes to change various terms and conditions and to waive certain existing defaults as well as rescind acceleration.

The exchange will either be carried out through a voluntary transaction or by filing a plan of reorganization (convenio concursal) under the Mexican Business Reorganization Act (Ley de Concursos Mercantiles).

Expiration for the exchange offer is 5 p.m. ET on May 18.

The exchange is in line with a previously announced agreement with creditors holding a majority of the 14¼% notes.

Under the agreement reached in January 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.

Bondholder Communications Group is the information and exchange agent (icalderon@bondcom.com, +44 207 382-4580 or 212 809-2663).

Iusacell is a Mexico City cell phone company.

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