Maxcom secures court approval to assume recapitalization agreement

By Caroline Salls

Pittsburgh, Aug. 6 - Maxcom Telecomunicaciones, SAB de CV received court approval to assume its December 2012 recapitalization agreement with Ventura Capital Privado, SA de CV and other parties, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, Ventura Capital Privado, Trust Number 1387, Javier Molinar Horcasitas and Enrique Castillo Sanchez Mejorada agreed to launch an equity tender offer to purchase 100% of Maxcom's equity interests and make a $45 million new capital contribution to the company in exchange for newly issued shares of reorganized Maxcom's series A common stock.

The purchasers will make the new capital contribution in exchange for series A common stock at a per-share price of Ps. 2.90. Reorganized Maxcom will issue common stock to the purchasers equal to the amount of the contribution, divided by the per-share price.

If the agreement is terminated under specified conditions, Maxcom will pay a $2.48 million termination fee to the purchasers.

In addition, the company will reimburse up to $1.25 million of the purchasers' expenses, unless the termination fee is paid, in which case the reimbursement would be capped at $1 million.

Maxcom, based in Mexico City, is a telecommunications provider of last-mile connectivity to micro-, small- and medium-sized businesses and residential customers. The company filed bankruptcy on July 23 under Chapter 11 case number 13-11839.

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