Maxcom USA noteholders raise concerns about plan solicitation process

By Caroline Salls

Pittsburgh, Sept. 9 – An informal group of Maxcom USA Telecom, Inc.’s noteholders objected Friday to confirmation of the company’s proposed pre-packaged plan of reorganization, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York.

The noteholder group said it was formed “in order to address noteholders’ concerns with the way the debtors solicited the plan and abruptly terminated the voting period.”

The noteholders said they were concerned that the solicitation process was designed to assure confirmation of the plan, and the documents the company has produced to date “have revealed that such fears were well taken.”

Specifically, the group said that as of Friday it had been unable to reconcile the ballots it reviewed with the tabulation summary filed by the Maxcom debtors showing noteholders’ acceptance of the plan.

In addition, the noteholders said communications between the company’s solicitation agents and noteholders showed that noteholders had difficulty following the solicitation procedures and, in many instances, did not realize they had to submit a separate ballot to vote on the plan.

“While the debtors’ agents bent over backwards to ensure that noteholders who were likely to support the plan were aware of the need to submit a ballot and the procedure for doing so, the debtors did not make the same extraordinary efforts to ensure that noteholders who may be opposed to the plan understood the voting procedures or even confirm that they received the solicitation materials,” the objection said.

The noteholders said Maxcom reported that the plan was approved by a just 0.06% margin, and it is up to the debtors to prove the accuracy of this tabulation and that no insiders or affiliates were included in final tally.

The group said this is “a burden they have thus far failed to meet.”

Maxcom is an integrated telecommunication services operator based in Mexico City. The company filed bankruptcy on Aug. 19 under Chapter 11 case number 19-23489.

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