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Mexico's Maxcom files for bankruptcy

Wednesday, July 24, 2013

Mexico's Maxcom filed for Chapter 11 bankruptcy in a U.S. court, as the telecoms firm pursues a recapitalization plan that would give full control to a investor group led by private equity firm Ventura Capital.

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 connections and about 80 percent of the country's fixed lines.

Through the court-administered bankruptcy process, Maxcom hopes to go ahead with a recapitalization that had earlier failed owing to lack of support from majority bondholders.

Source: Reuters