Cleary Gottlieb is representing Mexican wireless phone company Grupo Iusacell, S.A. de C.V. in the restructuring of its $350 million 14.25% senior notes due 2006. The restructuring is being effected through an offer to exchange the existing notes for $175 million 10% senior secured notes due 2013 and a consent solicitation, including a consent to the filing of a plan of reorganization pursuant to the Mexican Business Reorganization Act (Ley de Concursos Mercantiles). Iusacell intends to effect the restructuring by either a voluntary exchange or by filing a plan of reorganization in Mexico. The exchange offer and consent solicitation are scheduled to expire on May 18.
The 10% senior secured notes due 2013 are secured by a pledge on shares of Iusacell common stock representing between 28% and 34% of the fully-diluted shares. Creditors holding more than 50% of Iusacell’s outstanding indebtedness have already signed lock-up agreements to tender their debt and submit consents to the plan of reorganization.
Cleary is also representing Iusacell’s main operating subsidiary, Grupo Iusacell Celular, S.A. de C.V., in the restructuring of its $265.6 million in bank debt and $150 million in 10% senior notes due 2004, and another operating subsidiary, Iusacell Infraestructura, S.A. de C.V., in the restructuring of its $26.6 million in bank debt partially guaranteed by the Export-Import Bank of Norway.