Microcell does not make interest payment

New York, Dec. 2 - Microcell Telecommunications Inc. said it did not make the interest payment due Monday on its 14% senior discount notes maturing 2006.

The Montreal wireless telecommunications company added that it has a 30-day grace period before the non-payment becomes a default.

Microcell said it decision to miss the coupon is part of its evaluation of alternatives to reduce financing costs and improve liquidity.

Discussions are currently under way with a steering committee of its bank lenders and an ad hoc committee of its high-yield note holders.

Microcell previously said that alternatives being examined include a debt restructuring, a recapitalization, a capital infusion or a court-supervised reorganization.

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