Ad Hoc Group of Bondholders in Closing of Maxcom’s Restructuring

October 11, 2013

Cleary Gottlieb represented an ad hoc group of bondholders in connection with the debt restructuring of Maxcom Telecomunicaciones, S.A.B. de C.V. (NYSE: MXT, BMV: MAXCOM.CPO). The restructuring of US$200 million of Maxcom’s secured 11.0% Senior Notes due 2014, plus accrued and unpaid interest, was implemented through a pre-packaged plan of reorganization pursuant to chapter 11 of the U.S. Bankruptcy Code. In conjunction with the debt restructuring, Maxcom has entered into a recapitalization agreement with Ventura Capital Privado, S.A. de C.V. pursuant to which Ventura and certain related parties will make a capital contribution to Maxcom of US$45.0 million in cash in dollars and conduct a tender offer to acquire for cash, at a price equal to Ps.$2.90, up to 100% of the issued and outstanding shares of Maxcom. The plan of reorganization was approved by the Bankruptcy Court on September 10, 2013 and became effective on October 11, 2013. Maxcom’s debt restructuring was structured as a concurrent tender offer and recapitalization partly because of the difficulty with restructuring secured bondholder debt in a Mexican proceeding. Maxcom is the first Mexican company ever to effect a chapter 11 plan involving concurrent tender offer and recapitalization.

Maxcom is headquartered in Mexico City and is a facilities-based telecommunications provider using a “smart-build” approach to deliver last-mile connectivity to micro, small and medium-sized businesses and residential customers. Maxcom launched commercial operations in 1999 and is currently offering local, long distance, data, value-added, paid TV and IP-based services on a full basis in the greater metropolitan Mexico City, Puebla, Tehuacán, San Luis, and Querétaro areas, and on a selected basis in several cities in Mexico.