Waiver Extension Obtained by Grupo Iusacell
Tuesday September 2, 8:50 pm ET
MEXICO CITY, Sept. 2 /PRNewswire-FirstCall/ -- Grupo Iusacell, S.A. de C.V. [BMV: CEL, NYSE: CEL] ("Iusacell" or the "Company") announced today that its subsidiary, Grupo Iusacell Celular, S.A. de C.V. ("Iusacell Celular") has received an additional extension of its temporary Amendment and Waiver (the "Amendment") of certain provisions and technical defaults under its US$266 million Amended and Restated Credit Agreement, dated as of March 29, 2001 (the "Credit Agreement"). The Amendment originally expired on August 14, 2003.
As modified, the Amendment is now scheduled to expire on October 30 2003, subject to earlier termination under certain circumstances. The Amendment contains covenants 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 it makes any principal or interest payments on any of its indebtedness for borrowed money, excluding capital and operating leases.
This extension places the Company out of a default status under the Credit Agreement; however, if the Amendment is not further extended, upon its expiration Iusacell Celular would be in default of a financial ratio covenant under the Credit Agreement, which would constitute an Event of Default (as defined in the Credit Agreement) as if the Amendment had never become effective.
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. |
