The Mexican company requested protection under Chapter 11 of the United States Bankruptcy Rules.
Maxcom Telecomunicaciones and its subsidiary Maxcom USA Telecom filed voluntary petitions Monday pursuant to Chapter 11 of Bankruptcy Rules of the United States to obtain approval of its pre-agreed plan to enable restructuring to be completed of its Step Up Senior Notes due in 2020.
Through a report sent to the stock exchange's investor Mexicana de Valores (BMV), the telecommunications company stated that it intends to seek prompt approval of the pre-agreed plan that makes it possible to leave from said process as soon as possible.
Maxcom Telecomunicaciones assured that will continue to work regularly and continuously and relations with its customers, suppliers and creditors will generally be maintained. [1
According to the report, the company received the necessary number of votes from the holders of Step Up Senior Notes in number and amount to confirm the restructuring of the banknotes through a restructuring process under Chapter 11, and consequently Maxcom decided not to extend the exchange period.
It is important to note that the pre-determined plan under Chapter 11 will not affect any obligation other than Step Up Senior Notes, and Maxcom has submitted a series of proposals to the Bankruptcy Court that will allow it to continue to fulfill its obligations to its clients , suppliers and creditors in general, he says in the report.
Therefore, he expects his cash and cash flow position The expected amount of business is sufficient to finance his business during the period in which he intends to remain in Chapter 11 and continue his regular business in the future. .
In addition, the recently approved capital increase by the Annual General Meeting, as part of a successful restructuring process, will enable the company to finance both the acquired financial commitments and the costs associated with the process.
Maxcom's CFO Erik González, stated Re: “The company has worked under an extremely complex and difficult situation for the last five years including the devaluation of the peso against the dollar and legislative changes in the industry that have affected its earnings.  "But the measures taken before the restructuring process began in Chapter 11, along with u The successful restructuring of Step Up Senior Notes will reduce debt, strengthen the balance sheet and place it in a more competitive and solid situation to serve customers and also give a greater return to its creditors and shareholders, ”he argued. 19659012] Approval of the predetermined plan in Chapter 11, together with the capital increase in connection with the process, are the final steps to complete a successful restructuring, "and we are very optimistic about the future of the company and its operations" said manager.
So far, in BMV, Maxcom shares are down most on the day, losing 8.33 percent. (Ntx.)