Iusacell gets another extention.
Iusacell Announcement
biz.yahoo.com
Wednesday July 16, 8:45 am ET
MEXICO CITY--(BUSINESS WIRE)--July 16, 2003--Grupo
Iusacell, S.A. de C.V. (BMV:CEL)(NYSE:CEL - News; the
"Company") previously publicly announced that its subsidiary,
Grupo Iusacell Celular, S.A. de C.V. ("Iusacell Celular"), received
an additional extension of the temporary Amendment and Waiver
(the "Amendment") of certain provisions and defaults under its
US$266 million Amended and Restated Credit Agreement, dated
as of March 29, 2001 (the "Credit Agreement").
As extended, the Amendment is now scheduled to expire on
August 14, 2003. The Amendment contains covenants, expiring
on August 14, 2003, which restrict Iusacell Celular from making
any loans, advances, dividends or other payments to the
Company and require a proportionate prepayment of the loan
under the Credit Agreement if Iusacell Celular makes any
principal or interest payments on any of its indebtedness for
borrowed money, excluding capital and operating leases.
Accordingly, Iusacell Celular has determined that, pending
agreement with its lenders on a restructuring plan, it will not make
the US$7.5 million interest payment due on July 15, on its 10%
bonds due 2004. Iusacell Celular has a 30-day period after July
15 within which to make the interest payment. If the interest
payment is not made within the 30-day period, an event of default
would occur under the Indenture governing the bonds, and the
bondholders would have the right to declare the principal of and
accrued interest under the bonds due and payable or take other
legal actions specified in the Indenture, as they deem
appropriate.
[ snip ]
>> shareholders (including Salinas)
think CEL will eventually be worth far more than $0.50/ADR.
Can they force me to sell out at a trivial price? Or even the current
market price? ...or, Can I hang on and hope that (someday) I might
see some real value return to the (horrible) investment I made? <<
Sorry I've taken so long in answering, but I don't follow this one any more. They can't force you to sell at
Salinas' low ball price. What I can't figure is why VZ and Vodafone sold so cheaply, other than wanting to run away from the debt liability. Obviously shareholders are speculating that Salinas will find a way to turn the company around. I sold my last little bit of CEL for $1.99/share and would have done better to have held on a little longer. I wish you well, and maybe Salinas can pull a rabbit out of his hat and save the company and your investment. |
