MONTREAL-Canada’s smallest wireless operator, Microcell Telecommunications Inc., said it will not make a scheduled $29.3 million interest payment this week as it continues to evaluate possible alternatives to reduce its financing costs and improve its liquidity position.
The GSM operator, which serves more than 1.2 million customers under its Fido brand name, said it has the money to make the payment on its 14 percent senior discount notes due 2006 but is currently pursuing discussions with a steering committee of its existing secured bank lenders as well as an ad hoc committee of its existing unsecured high-yield note holders.
Microcell has a 30-day grace period to make the scheduled payment in order to avoid default consequences under the agreement.
