Hedge Fund Files Ch. 11 Against Cellular Company

Law360 (July 17, 2006, 12:00 AM EDT) -- A hedge fund has filed an involuntary Chapter 11 petition against Mexican cellular operator Grupo Iusacell Celular SA de CV, in an attempt to thwart the company’s debt restructuring and negotiate a better deal.

Gramercy Emerging Markets Fund, which holds about $56 million of the company’s overdue bonds, believes the company’s restructuring proposal shows a preference for the company’s lenders over its bondholders.

Iusacell Celular, a subsidiary of Grupo Iusacell SA de CV, plans to exchange $190 million in bank debt for $190 million in new...
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