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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October, 2006
GRUPO IUSACELL, S.A. de C.V.
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(Translation of registrant's name into English)
Montes Urales 460
Col. Lomas de Chapultepec, Deleg. Miguel Hidalgo
11000, Mexico D.F.
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(Address of principal executive office)
Indicate by check mark whether the registrant files or will fill annual reports
under cover of Form 20-F or Form 40-F: Form 20-F [X] Form 40-F [ ]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g-3-2(b) under the Securities and Exchange Act of
1934. Yes [ ] No [X]
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Documents Furnished By the Registrant
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1. Press Release of the Registrant dated October 11, 2006
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INVESTOR CONTACTS
Jose Luis Riera K.
Chief Financial Officer
5255-5109-5927
J.Victor Ferrer
Finance Manager
5255-5109-5273
vferrer@iusacell.com.mx
IUSACELL ANNOUNCES
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Mexico City, October 11, 2006 - Grupo Iusacell, S.A. de C.V. [BMV: CEL]
("Iusacell") announces that the restructuring of the debt of its operating
subsidiary, Grupo Iusacell Celular, S.A. de C.V. ("Iusacell Celular") which
includes US$190 million of Tranche A Bank Loans ("Tranche A Loans"), US$76
million of Tranche B Bank Loans ("Tranche B Loans") and US$150 million of 10%
Senior Notes due in 2004 (the "2004 Notes"), continues advancing within the
framework established by its strategic plan, and that it anticipates that the
restructuring agreement reached in principle with the majority of its creditors
will be legally finalized soon.
As of today, more than 82% of Iusacell's creditors have confirmed their
support of its Plan of Reorganization by means of its exchange offer and consent
solicitation launched on May of this year and that expired on July 26, 2006.
The restructuring consists of: an exchange of any and all of its (a)
Tranche A Loans for new senior floating rate first lien notes due 2011 accruing
interest at three-month LIBOR plus 4.00% and (b) Tranche B Loans and its 2004
Notes for its new 10% senior subordinated second lien notes due 2012, on the
terms and conditions that were previously announced.
Another milestone was reached today in the legal implementation of the
restructuring agreement reached in principle with Iusacell's creditors. As
stated in previous press releases, Iusacell Celular filed a voluntary petition
for concurso mercantil before a Mexican judge (Juez Septimo de Distrito en
Materia Civil del Primer Circuito), which today and as a part of the
restructuring process, issued a declaration of concurso mercantil (sentencia de
concurso) for Iusacell Celular. As a result of this declaration, Iusacell
Celular enters a new phase towards completing its restructuring and expects to
execute soon the corresponding plan of reorganization (convenio concursal) to be
submitted before the Mexican court.
The Federal Institute Specializing in Concursos Mercantiles (Instituto
Federal de Especialistas en Concursos Mercantiles) was responsible of the review
of Iusacell's books and records which were concluded satisfactorily with the
report of the examiner Mr. Pablo Octaviano Mendoza Garcia.
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ABOUT IUSACELL
Grupo Iusacell, S.A. de C.V. (Iusacell, BMV: CEL) is a wireless cellular and PCS
service provider in Mexico with a national footprint. Iusacell offers more and
better voice communication and data services through state-of-the-art
technology, such as its new 3G network, throughout all of the regions in which
it operate. In addition to our core mobile telephony services, we also provide a
wide range of other telecommunications services, including long distance,
wireless local telephony and data transmission services. Additional information
is available at www.iusacell.com
LEGAL DISCLAIMER
Grupo Iusacell, S.A. de C.V. quarterly reports and all other written materials
may from time to time contain statements about expected future events and
financial results that are forward-looking and subject to risks and
uncertainties. For those statements, the Company claims the protection of the
safe harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Discussion of factors that may affect future
results is contained in our filings with the Securities and Exchange Commission.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GRUPO IUSACELL, S.A. DE C.V.
Date: October 11, 2006
/s/ Fernando Cabrera
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Name: Fernando Cabrera
Title: Attorney in fact
/s/ Jose Luis Riera
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Name: Jose Luis Riera
Title: Attorney in fact
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