America Movil obtains option to take control of CTI as part of debt restructuring

By Carlise Newman

Chicago, July 24 - America Movil SA de CV said it has an option to purchase a controlling interest in Argentine wireless company CTI as part of a restructuring of CTI's debt that will result in the write-off of over 75% of its $1.1 billion in borrowings.

Coinmov entered into an agreement with Verizon and other CTI shareholders under which it will acquire a 100% ownership interest in CTI Holdings. If it exercises its option, America Movil will have a 60% voting interest and 49% economic interest in Coinmov and, eventually, CTI.

Upon completion of the debt restructuring, CTI's enterprise value will amount to just under $200 million, once payments made to the equity holders and the cash position of the company are taken into account.

Regarding secured debt, lenders have accepted the restructuring plan; and in the case of the unsecured debt, 90% of the bondholders have voted in favor of a restructuring plan of the debt.

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