Mexico’s Altan Redes announces end to bankruptcy

Mexico’s Altan Redes announces end to bankruptcy

Recent days have brought some cause for celebration for Mexican telecommunication company Altan Redes as it finally emerged from bankruptcy.

Altan Redes has since 2016 been developing the so-called Red Compartida (shared network), part of a sector reform aimed at curbing the market dominance of America Movil and improving low levels of penetration and coverage.

As regular readers will know, Altan Redes filed for bankruptcy in July 2021 aiming to use protection under Mexican law to renegotiate its debts. In June this year the government signed an agreement to become the majority stakeholder in Altan Redes. It also agreed to bail it out. Now the company has emerged from bankruptcy with this government assistance, according to a statement published by the firm on Thursday.

The First District Court for Bankruptcy Matters in Mexico City apparently agreed on 28 October to approve the bankruptcy agreement as an enforceable judgment. The court’s decision was published late last week. The court also mentioned that the agreement was approved by 94% of the creditors.

The conclusion of the commercial bankruptcy process means that  investment in Red Compartida can go ahead, bringing some continuity to the business and holding out the opportunity for future revenue generation.

Currently, Altán Redes says it offers the widest national coverage, both directly, through its own 4.5G infrastructure, to more than 70.73% of the population, and indirectly, through associations with other operators. to all of Mexico.

It can boast a number of partnerships already, though they are not necessarily exclusive. For example, carrier-as-a-service platform Oxio recently announced a connectivity agreement with Telcel to add to its agreement with Altán Redes.