International Wireless Communications Holdings Inc. filed for Chapter 11 bankruptcy protection earlier this month, saying its finances and several of its businesses have been adversely affected by the financial and political instability in Asia.
IWC owns and operates wireless communications networks in major emerging markets in Asia and Latin America. The filing was made in the U.S. Bankruptcy Court in the district of Delaware.
IWC also has filed related Chapter 11 petitions for four of its subsidiaries, including International Wireless Communications Inc., International Wireless Communications Latin America Holdings Ltd., Pakistan Wireless Holdings Ltd. and Radio Movil Digital Americas Inc., which along with IWC collectively are the “debtors.”
The filing allows the debtors to continue normal operations and to obtain protection from immediate collection of obligations owed to existing creditors while a reorganization plan is formulated.
The debtors are negotiating an agreement with their principal unsecured creditors and their largest shareholder, Vanguard Cellular Operating Corp., that is expected to be the foundation of the reorganization plan, although nothing has been finalized and the parties active in the negotiation process are confidential, said John Rosenbaum, outside council for IWC.
IWC and the four subsidiaries anticipate receiving debtor-in-possession financing as part of the reorganization plan.
IWC is “moving ahead very well in the negotiations, and we expect to have some news shortly with full-blown details of the reorganization plan, the restructuring and more details on the DIP financing,” Rosenbaum said.
Vanguard did not comment on IWC’s bankruptcy filing or the negotiations.
