Maxcom Telecomunicaciones Files Voluntary Prepackaged Chapter 11 Cases

(RTTNews) - Maxcom Telecomunicaciones, S.A.B. de C.V. (MXT) announced Wednesday that it commenced voluntary prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware on July 23, 2013 to implement its previously announced recapitalization and debt restructuring.

Under the Chapter 11 plan of reorganization, Maxcom will complete a comprehensive recapitalization and debt restructuring that is expected to significantly reduce Maxcom's debt service expense and position Maxcom for growth with a US$45 million capital infusion. As of the voting deadline of July 23, 2013, over 98 percent in amount and over 93 percent in number of the holders of 11% Senior Notes due 2014 that cast ballots voted to accept the Plan.

The company said it expects to complete its restructuring, which is subject to U.S. Bankruptcy Court approval and the conditions set forth in the recapitalization agreement and the restructuring and support agreement, within approximately 60 days and anticipates emerging from Chapter 11 by early fall.