Maxcom Telecomunicaciones, S.A.B. de C.V. (NYSE: MXT) said that the US Bankruptcy Court for the District of Delaware has approved several first day motions filed by the company, allowing it to pay employees and vendors, among other things.
The US Bankruptcy Court´s approval allows the company to maintain its day-to-day operations without disruption while effectuating its previously announced comprehensive recapitalization and debt restructuring. The company commenced its voluntary prepackaged Chapter 11 cases in the US Bankruptcy Court on July 23, 2013.
Under the Chapter 11 plan of reorganization, Maxcom will complete a recapitalization and debt restructuring that is expected to significantly reduce Maxcom´s debt service expense and position Maxcom for growth with a USD45m capital infusion.
The company has engaged Lazard Freres & Co. LLC and its alliance partner Alfaro, Davila y Rios, S.C. as its financial advisor and Kirkland & Ellis LLP and Santamarina y Steta, S.C. as its US and Mexican legal advisors in connection with its restructuring proceedings and potential Chapter 11 case. The Ad Hoc Group has retained Cleary Gottlieb Steen & Hamilton LLP and Cervantes Sainz, S.C., as its US and Mexican legal advisors. Ventura has retained VACE Partners as its financial advisor, and Paul Hastings LLP and Jones Day as its US and Mexican legal advisors, respectively.
Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico City, Mexico, is a facilities-based telecommunications provider using a “smart-build” approach to deliver last-mile connectivity to micro, small, and medium-sized businesses and residential customers in the Mexican territory.