Comerci Slides Into Concurso

Controladora Comerical Mexicana has officially entered concurso mercantil bankruptcy protection, it says, after acceptance by courts. Nearly all creditors have agreed to a $1.54bn debt-restructuring agreement. Under the plan, the company is issuing MXP19.25bn equivalent in new MXP and USD debt with an average life of 6.7 years. It includes MXP14.4bn in loans at floating rates, MXP1.89bn in 8-year peso bonds at 9.25%, and $226.3m in 8-year dollar-denominated bonds at 7%. It also includes a cash payment of $45m on closing, and a lock-up fee for certain bondholders equivalent to 1 percentage point of principal amount held. Comerci defaulted on its debt in October. Rothschild is advising on the restructuring.