MAXCOM SUCCESSFULLY COMPLETES FINANCIAL RESTRUCTURING AND EXECUTES EXCHANGE OF ITS OLD NOTES; CHAPTER 11 CASE WILL BE CLOSED SHORTLY
Maxcom Telecomunicaciones S.A.B. de C.V. and its subsidiary Maxcom USA Telecom, Inc. (collectively, the “Company” or “Maxcom”) today announced that it has successfully completed the Company’s debt restructuring process and exchange of its old notes pursuant to the Chapter 11 Prepackaged Plan of Reorganization (the “Plan”) confirmed by Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York on September 17, 2019.
With majority support from the Old Notes holders, and as a result of completing the bankruptcy process and implementing the Plan, the Company significantly reduced its debt. Effective at emergence, the Company has exchanged its Old Notes for $57 million in Senior Notes, $20 million in Junior PIK Notes and $10 million in cash payment to the note holders. In addition to the exchange of its Old Notes, the Company’s shareholders have committed for a total equity contribution of MX$ 330 million.
“Successfully emerging from Chapter 11 in less than 70 days with a restructured and stronger balance sheet, while maintaining and continuing our operation and service levels, is a testament to the hard work of our staff and the strength of our relationships with our customers, suppliers, and creditors”, Maxcom’s Chief Financial Officer Erik Gonzalez said. “We have accomplished the key milestones that we set for ourselves at the beginning of this process, including a more sustainable capital structure. Furthermore, the Company will be able to focus going forward in executing its commercial strategy, with the certainty of having a strengthened balance sheet to support the business.
“With the restructuring now successfully completed, Maxcom anticipates closing its Chapter 11 case shortly.