Maxcom opens prepack to restructure 2020 notes
Maxcom USA Telecom, Inc. and parent Maxcom Telecomunicaciones, S.A.B. de C.V. filed Chapter 11 in the Southern District of New York with a joint prepackaged plan already on file source filing source filing. The business was a Mexico-focused facilities-based telecom provider offering voice, data, internet and VoIP services, while shifting away from residential operations toward commercial and wholesale customers source filing.
The filing centered on approximately $103.4 million of Step-Up Senior Notes due 2020, plus about $5.6 million of accrued interest, after the company concluded it could not refinance the maturity amid operating losses, peso depreciation, telecom reform pressures and network modernization needs source filing. The plan proposed exchanging Old Notes into new 2024 senior notes at $550 per $1,000 of Old Notes, peso-denominated junior PIK notes at $100 per $1,000, cash, accrued interest and early-participation consideration, with existing equityholders expected to contribute up to Ps. 300 million source filing. Old Notes holders were the sole impaired voting class; ordinary-course and other unimpaired classes were left unimpaired.
