| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers N > Headlines for NII Holdings, Inc. (Nextel International) > News item |
Nextel International fails to make principal payment, enters forbearance, hires advisor
New York, Jan. 3 - Nextel International said its Argentinean operating subsidiaries failed to make an $8.3 million principal payment due Dec. 31, 2001 on its Argentine credit facility and added that it has entered into a forbearance agreement with the lenders. The company also said it has hired Houlihan Lokey Howard & Zukin Capital to assist in examining restructuring alternatives and is beginning discussions with noteholders.
Nextel International, formally known as NII Holdings, Inc. and a substantially wholly owned subsidiary of Nextel Communications, Inc., said it did make a $2.4 million interest payment due on the credit facility.
Under the forbearance agreement, the lenders will not exercise their rights to principal repayments before Jan. 22.
NII also signed a similar agreement with Motorola Credit Corp. covering NII's vendor financing facilities. Failure to make the principal payment on the Argentine credit facility caused a cross-default on the vendor financing.
As of Dec. 31, NII said it had $108 million outstanding on the Argentine credit facility and $382 on the vendor financing facility.
NII also said in a filing with the Securities and Exchange Commission disclosing the failure to make the principal payment that it is talking to these lenders about restructuring the facilities.
It is also beginning negotiations with holders of its 13% senior redeemable discount notes due 2007, its 12.125% senior serial redeemable discount notes due 2008 and its 12.75% senior serial redeemable notes due 2010 on restructuring those bonds.
NII said there is no assurance it will be able to successfully restructure any of its obligations and warned it may have to sell strategic assets, reorganize under Chapter 11 of the U.S. Bankruptcy Code or take other measures.
Nextel Communications said it is not a party to any of the borrowings.
End
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.