Iusacell files for bankruptcy in Mexico; 89% of noteholders tender under exchange offer

By Caroline Salls

Pittsburgh, June 2 - Grupo Iusacell, SA de CV said it filed for bankruptcy under Mexican law, and 89% of the holders of its $350 million 14¼% notes due 2006 tendered their notes as of the June 1 expiration date of its debt restructuring exchange offer, according to a company news release.

Iusacell said it intends to implement its debt restructuring through its filing for bankruptcy under the Mexican Business Reorganization Act.

Once the Mexican court approves the company's plan of reorganization and the terms and conditions of the restructuring are met, all existing notes will be exchanged for new notes.

Under the restructuring, $175 million of new 10% notes due Dec. 31, 2013 will be issued.

"The results of the exchange offer and consent solicitation represent the achievement of another milestone in the restructuring of Iusacell's debt and a step toward the continued strengthening of our operations," chief executive officer Gustavo Guzman said in the release.

Iusacell is a Mexico City cell phone company.

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