Axtel Shares Fall as Bondholders Said to Spurn RestructuringDanielle Verbrigghe
Axtel SAB, Mexico’s second-largest land-line phone carrier, fell the most in two months after a creditor group said it would reject the company’s debt-restructuring offer.
Shares of the company, based in San Pedro Garza Garcia, fell 7.2 percent to 3.08 pesos at the close of trading in Mexico City. It was the steepest slide since Nov. 14.
Bondholders controlling 40 percent of Axtel’s dollar notes will reject the Mexican phone company’s restructuring offer, Bloomberg News reported yesterday, citing a letter obtained from two investors in a creditor group.
“If this doesn’t go through, the company could not lower its leverage,” said Manuel Jimenez, a Banorte Ixe Casa de Bolsa analyst in Mexico City.
Axtel, struggling with record losses as it tries to compete with billionaire Carlos Slim’s America Movil SAB, has offered to swap debt for new notes and cash in a restructuring that BCP Securities valued at 54 cents on the dollar.
A phone call to the company’s investor relations office and an e-mail to a press official seeking comment were not immediately returned.