Fitch Boosts Bio-Pappel Rating

Fitch has upgraded Bio-Pappel, known as Corporacion Durango until July 1, to B from CCC, as a result of improved liquidity. The Mexican paper company generated $54m of cashflow from operations during the last 12 months and has built its cash position to $88m as of June 30, says the agency. It has $266m of total debt, of which $250m is in 2016 senior guaranteed step up notes. The outlook is stable. Durango filed for bankruptcy in 2008 after missing a $26.5m interest payment on its senior notes. Through a restructuring, it was able to reduce leverage from $522m to $250m in 2009. Rothschild advised on the restructuring.