CCM Gets Credit, Loan to Continue Operating

Mexican retailer CCM’s main operating unit has taken out an MXP3bn credit line with Nacional Financiera and a MXP327m bank loan. Proceeds will be used to pay suppliers while the holding company restructures debt. Both facilities pay TIIE plus 5bp. The move comes after a Mexican court Tuesday denied CCM the possibility to enter into a concurso mercantil protection process, under which a company can devise a binding financial restructuring plan with 51% support of outstanding debt holders. The company still plans to pursue protection alternatives. CMM defaulted on debt payments earlier this month, after reporting $1.1bn in exchange derivatives loss. Credit Suisse is advising it on the restructuring of some $2bn in debt.