Iusacell credit facility lenders consider extending waiver

By Carlise Newman

Chicago, April 29 - Grupo Iusacell Celular, SA de CV said its lenders have agreed to consider extending the temporary amendment and waiver under its $266 million amended and restated credit agreement beyond the current expiration date.

The Mexico City wireless company said the lenders are looking at the extension based on the progress of the company's restructuring plan.

The waiver, which applies to the debt/EBITDA ratio covenant, currently ends on May 22.

If the amendment is not extended, Iusacell Celular said it will be in default and the lenders under the credit agreement will have the remedies they would otherwise have had if the amendment had not been executed.

The amendment contains covenants which expire on June 30 restricting Iusacell Celular from making any loans, advances, dividends or other payments to the Grupo Iusacell, SA de CV. In addition they require a proportionate prepayment of the loan under the credit agreement if it makes any principal payments on any of its indebtedness for borrowed money, excluding capital and operating leases.

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