Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Maxcom May Seek Bankruptcy as Cash Dwindles in Funding Delay

Maxcom Telecomunicaciones SAB, the Mexican phone carrier that agreed to a private-equity takeover, said it may have to file for bankruptcy after failing to convince debtholders to exchange the majority of their bonds.

Maxcom may miss its June 15 coupon payment if it’s unable to convince more bondholders to swap their notes due in 2014 for new ones due in 2020, according to a statement today. The company extended the offer, which had been set to expire yesterday, through April 24. Bondholders have only tendered 42 percent of the notes, Maxcom said.

The company, based in Mexico City, is pushing to complete a deal in which Ventura Capital Privado SA would take control by acquiring shares in a tender offer. That process was also extended through April 24, the third time it has been pushed back, Maxcom said.

Without additional funding from Ventura, Maxcom’s financial viability has deteriorated, with cash dwindling to 102.9 million pesos ($8.5 million), it said. That’s down from 147 million pesos at the end of 2012.

Maxcom would restructure by beginning voluntary Chapter 11 bankruptcy proceedings in the U.S. or obtaining “other forms of protection in case of insolvency,” it said. The company has hired legal counsel to advise it on preparations for a restructuring, it said.

Maxcom amended the terms of the exchange, increasing the minimum requirement for notes tendered to 80 percent from 61 percent. The company also increased the bonds’ interest rates, which will rise every two years.

The company’s shares dropped 2.2 percent to 4.84 pesos at the close in Mexico City. They have climbed 25 percent this year, compared with a 1.6 percent increase for the benchmark IPC index.

Yields on Maxcom bonds due 2014 rose 77 basis points, or 0.77 percentage point, to 37.17 percent.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.