Maxcom Announces Efforts to Maximize its Short-term Financial Flexibility

Rhea-AI Summary

Maxcom Telecomunicaciones announced it will not pay the semi-annual interest of USD$2.3 million on its 8% Senior Secured Notes due 2024, which was due on April 26, 2021. The company is facing liquidity challenges due to the pandemic and ongoing disputes with Mexican tax authorities. Maxcom is exploring strategic financial alternatives to enhance its long-term value proposition while working to meet its financial obligations. The company emphasizes its commitment to maintaining communication with stakeholders.

Positive

• Exploration of strategic financial alternatives to enhance long-term value.

Negative

• Decision not to pay USD$2.3 million interest on the 8% Senior Secured Notes.
• Liquidity challenges caused by the pandemic.
• Restricted access to capital due to disputes with Mexican tax authorities.

MEXICO CITY, April 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 order to maximize its short-term financial flexibility the Company will not pay the semi-annual interest on its 8% Senior Secured Notes due 2024 ("the Notes"), payable on April 26, 2021. Interest accrued to date on this coupon amount to USD$2.3 million. Payment of the interest is subject to a 30 day grace period.

Maxcom's liquidity has been adversely affected by the pandemic as well as restricted access to capital sources resulting from a dispute with the Mexican tax authorities.

Maxcom is currently analyzing strategic solutions and financial alternatives that would allow the Company to consolidate its value proposition for the long term, comply as far as possible with its financial obligations and maximize the benefit for all its stakeholders.

Maxcom reiterates its commitment to maintain close communication with the investing 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.

For more information contact:

Rodrigo Wright
Ciudad de México
(52 55) 4770-1170
rodrigo.wright@maxcom.com 

View original content:http://www.prnewswire.com/news-releases/maxcom-announces-efforts-to-maximize-its-short-term-financial-flexibility-301277358.html

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

FAQ

Why will Maxcom not pay the interest on its Senior Secured Notes due 2024?

Maxcom will not pay the interest to maximize short-term financial flexibility.

What is the amount of interest Maxcom has deferred?

Maxcom has deferred USD$2.3 million in interest payments on its Senior Secured Notes.

What are the reasons behind Maxcom's liquidity issues?

The liquidity issues are primarily due to the pandemic and a dispute with Mexican tax authorities.

What is Maxcom's strategy to improve its financial situation?

Maxcom is analyzing strategic solutions and financial alternatives for better long-term consolidation.

When was the interest payment due for Maxcom's Senior Secured Notes?

The interest payment was due on April 26, 2021.