Iusacell Announcement Monday June 2, 5:05 pm ET
biz.yahoo.com
MEXICO CITY--(BUSINESS WIRE)--June 2, 2003--Grupo
Iusacell, S.A. de C.V. (BMV:CEL)(NYSE:CEL - News) previously
publicly announced that it retained Morgan Stanley to assist it in
developing a debt restructuring plan for presentation to its
lenders. The Company has determined that pending agreement
with its lenders on a restructuring plan; it will suspend making the
US$25 million interest payment due on June 1, on its 14.25%
bonds due 2006. The Company has a 30-day cure period to
make the interest payment, before an event of default has
occurred. If the interest payment is not made within the thirty-day
period an event of default would occur under the Indenture
governing the bonds, and the bondholders would have the right
to accelerate the principal of the bonds or take other legal actions
as they deem appropriate. The Company, while continuing with
its day to day operations, will continue working with its advisors,
Morgan Stanley, towards the formulation of a consensual and
comprehensive restructuring plan.
About Iusacell
Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE:CEL; BMV:CEL) is
a wireless cellular and PCS service provider in seven of Mexico's
nine regions, including Mexico City, Guadalajara, Monterrey,
Tijuana, Acapulco, Puebla, Leon and Merida. The Company's
service regions encompass a total of approximately 92 million
POPs, representing approximately 90% of the country's total
population. Iusacell is under the management and operating
control of subsidiaries of Verizon Communications Inc. (NYSE:VZ
- News).
This press release contains statements about expected future
events and financial results that are forward-looking and subject
to risks and uncertainties. For those statements, the Company
claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform
Act of 1995. Discussion of factors that may affect future results is
contained in our filings with the Securities and Exchange
Commission.
Contact:
Grupo Iusacell, S.A. de C.V., Mexico City
Investor Contacts:
Russell A. Olson, 011-5255-5109-5751
russell.olson@iusacell.com.mx
or
Carlos J. Moctezuma, 011-5255-5109-5780
Investor Relations
carlos.moctezuma@iusacell.com.mx
Source: Grupo Iusacell, S.A. de C.V.
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Comment: I think it is very revealing that they can't get their two biggest shareholders. multi-billion dollar corporations Verzion and Vodafone, to cough up the measily extra ten or fifteen million they would need to make this 25 miliion dollar payment, thus saving the company from bankruptcy and saving Verizon's and Vodafone's alread considerable investment from going to the creditors. It tells me that they are applying the principle of not throwing good money after bad and that VZ and VOD have thrown in the towel and are going to write this one off as a bad investment. JMO. What think you? DPR |
