Reuters: Bankruptcy News: Mexico's Maxcom files for bankruptcy, pursues Ventura deal

Reuters: Bankruptcy News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Mexico's Maxcom files for bankruptcy, pursues Ventura deal Jul 24th 2013, 06:46 Wed Jul 24, 2013 2:46am EDT * Maxcom to go ahead with Ventura recapitalization plan * To receive $45 mln from investor group led by Ventura * Investor group to launch tender offer for Maxcom stock July 24 (Reuters) - Maxcom filed for pre-packaged Chapter 11 bankruptcy in a U.S. court, legal filings showed, as the Mexican telecoms firm pursues a recapitalization plan that would give full control to a investor group led by private equity firm Ventura Capital. Small phone companies in Mexico have struggled to compete with billionaire businessman Carlos Slim's America Movil , which has about 70 percent of Mexican mobile connections and about 80 percent of the country's fixed lines. Through the court-administered bankruptcy process, Maxcom hopes to go ahead with a recapitalization that had earlier failed owing to lack of support from majority bondholders. The company, which provides phone, Internet and television services, had negotiated with private equity firm Ventura Capital Privado for a $45 million capital infusion. The Ventura deal collapsed, however, because not enough of Maxcom's senior noteholders agreed to the terms, which included an exchange of 80 percent of existing notes for new notes with reduced coupon payments and extended maturity. Maxcom said in the court filing late on Tuesday that along with certain bondholders and holders of equity interests, the company would pursue the same recapitalization plan through the bankruptcy process. About 48.7 percent of senior noteholders holding about $86.1 million in debt have now agreed to the Ventura deal, the company said in the filing. Maxcom will receive a $45 million capital infusion from a group of investors led by Ventura. The investor group will also publicly bid for Maxcom's outstanding shares and 44 percent of its current equity interest holders have already committed to participate, the company said. The company listed total assets of $11.11 billion and total debts of $402.3 million. "Creditors and all parties in interest will benefit from the swift consummation of financial restructuring and hope to emerge from Chapter 11 as quickly as possible," Maxcom said in the filing. In a pre-packaged bankruptcy, management negotiates the general terms of a bankruptcy plan with major creditors prior to the filing. The case is filed as Maxcom Telecomunecaciones S.A.B, Case No. 13-11839, U.S. Bankruptcy Court, District of Delaware. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions