Maxcom restructure and tender offer explained

Author: Zoe Thomas | Published: 7 Nov 2013
  • Maxcom completed its bankruptcy proceedings and tender offer simultaneously, allowing it to restructure its debt and receive an infusion of fresh capital;
  • By filing US chapter 11 bankruptcy, the Mexican telecom company was able to establish the requisite number of bondholders to complete a debt restructuring that had previously been blocked by a small group;
  • Regulatory changes to the Mexican telecoms industry are set to open up the market to new players and increase smaller players’ market share;
  • Changes already made to the Mexican constitution have encouraged inbound investment and led to companies restructuring the rights of their foreign investors.

Maxcom Telecomunicaciones’s recent restructure allowed it to recapitalise and take advantage of regulatory changes that will open up the Mexican telecom market.

The strategy required precise timing, involving...