Maxcom Annoucement Regarding Its Semi-annual Interest Payment

Rhea-AI Summary

Maxcom Telecomunicaciones announced it will not make the semi-annual interest payment on its 8% Senior Secured Notes due 2024, citing liquidity challenges exacerbated by the pandemic and a dispute with tax authorities. This decision is aimed at preserving cash for operating activities and ensuring business continuity. The company is exploring strategic solutions and financial alternatives to maintain its value proposition for stakeholders while committing to transparent communication with investors.

Positive

• Maxcom is exploring strategic solutions for long-term business viability.
• The company is focused on cash preservation to ensure operational continuity.

Negative

• Liquidity issues have been worsened by the pandemic.
• Restricted access to capital due to a dispute with Mexican tax authorities.

MEXICO CITY, May 26, 2021 /PRNewswire/ -- Maxcom Telecomunicaciones S.A.B. de C.V. (B.M.V.: MAXCOM A, O.T.C.: MXMTY) ("Maxcom" or the "Company") announced today that in accordance with the relevant event published on April 26, 2021, and in order to maximize its short-term financial flexibility, the Company has decided not to make the semi-annual interest payment on its 8% Senior Secured Notes due 2024 ("the Notes") during the corresponding 30-day grace period.

Maxcom's liquidity has been negatively affected by the pandemic and by restricted access to sources of capital as a result of a dispute with the Mexican tax authorities. Maxcom is forced to sustain this measure in order to prioritize the use of cash resources for operating activities and ensure its business continuity.

Maxcom reiterates that it continues analyzing strategic solutions and financial alternatives that will allow the company to consolidate its value proposition in the long term and comply, to the extent possible, with its financial duties in the benefit of all its stakeholders.

Maxcom confirms its commitment to maintaining close communication with the investment public.

About Maxcom

Maxcom Telecomunicaciones, S.A.B. de C.V. is headquartered in Mexico City and is a facilities-based telecommunications provider using a "smart-build" approach to deliver "last-mile" connectivity to enterprises and residential customers in Mexico.

Maxcom launched commercial operations in May 1999 and is currently offing local and long-distance telephony services; wired, wireless and cellular data transmission and value-added services in Mexico City metropolitan area, Monterrey, Puebla, Querétaro, León, Guadalajara, San Luis Potosí, Tehuacán, and Toluca, as well as in other cities in Mexico. The information contained in this press release is the exclusive responsibility of Maxcom Telecomunicaciones, S.A.B. de C.V. and has not been reviewed by the Mexican National Banking and Securities Commission (CNBV) or any other authority.

The trading of these securities by an investor is the sole responsibility of such investor.

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SOURCE Maxcom Telecomunicaciones, S.A.B. de C.V.

FAQ

Why is Maxcom not making the semi-annual interest payment on its 8% Senior Secured Notes (MXT)?

Maxcom has decided not to make the payment due to liquidity challenges and a dispute with tax authorities.

What are the implications of Maxcom's decision on its financial status (MXT)?

This decision reflects significant liquidity issues and may affect investor confidence.

How is Maxcom planning to address its liquidity issues (MXT)?

Maxcom is analyzing strategic solutions and financial alternatives to consolidate its value proposition.

When did Maxcom announce this decision regarding the interest payment (MXT)?

The announcement was made on May 26, 2021.