June 18, 2013 / 1:01 PM / in 5 years

Mexico's Maxcom negotiates prepackaged bankruptcy

* Maxcom, investors working on a bankruptcy plan in U.S. courts

* Investors also looking to buy Maxcom

* Company fails to pay about $11 million in interest

MEXICO CITY, June 18 (Reuters) - Mexican telecommunications company Maxcom said on Tuesday that it was seeking to negotiate new capital and a restructuring through a so-called prepackaged bankruptcy process in U.S. courts.

The company, which provides phone, Internet and television services, said it was working on the bankruptcy plan with some of its creditors, shareholders and private equity firm Ventura Capital Privado.

Ventura, the creditors and shareholders are also working on a public bid to buy Maxcom, the company said.

Separately, Maxcom said it had failed to pay about $11 million in interest due Monday on notes expiring in 2014.

Small phone companies in Mexico have struggled to compete with billionaire businessman Carlos Slim’s America Movil , which has about 70 percent of Mexican mobile lines and about 80 percent of the country’s fixed lines.

Mexico’s government recently approved reforms to the telecom sector designed to increase competition.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below