Secured Lenders approve Microcell recapitalization
TORONTO-Microcell Telecommunications Inc. said its secured lenders have agreed on the terms of a recapitalization plan for the struggling company.
Microcell missed a US$29.3 million interest payment that was due 2 December.
Montreal-based Microcell, which operates the Fido mobile-phone service, said details of the plan should be available by 6 January. Holders of about 74 percent of Microcell’s outstanding secured debt were in favor of the plan.
The firm, the smallest of Canada’s four major cell phone companies, is controlled by Quebec entrepreneur Charles Sirois. Microcell had warned it expected to breach its bank covenants in the fourth quarter.
“The company also continues to have constructive discussion regarding the plan with an ad hoc committee of unsecured noteholders,” Microcell said in a release.
