Mexican telco Maxcom Telecommunications has filed for Chapter 11 protection in the U.S. bankruptcy court in Delaware as a way of restarting a recapitalization plan that creditors initially rejected.
That plan, led by private equity firm Ventura Capital and others, would inject $45 million of capital into the company in exchange for full operating control. It would also allow the investor group to bid for Maxcom's outstanding shares and 44 percent of its current equity interest.
Maxcom has had a tough time competing with America Movil (NYSE: AMX), which controls about 80 percent of Mexico's fixed lines.
Maxcom's creditors narrowly rejected the recapitalization plan, which includes "an exchange of 80 percent of existing notes for new notes with reduced coupon payments and extended maturity," a Reuters story said. About 48.7 percent of senior noteholders have now agreed to the plan, however, and Maxcom is hoping to use the court-administered bankruptcy process to move forward.
In the filing, Maxcom, which provides fixed line services in five Mexican cities--Puebla, Mexico City, Queretar, San Luis Potsi and Tehuacan--said it had assets of $11.11 billion and debts of $402.3 million.
- Reuters has this story
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