captain sparrow
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SNS mi ha sverginato in fatto di fallimenti e bruciori
Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1
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ICA Skips Debt Payment as $1.35 Billion Bond Default Looms
By Brendan Case and Nacha Cattan - 18 dic 2015, 14:47:33
Empresas ICA SAB will skip a debt payment due by the end of the month as Mexico’s biggest construction company veers toward the nation’s biggest default in at least two decades. Stocks and bonds tumbled.
The builder won’t pay $31 million in interest on its $700 million in bonds maturing in 2024, the company said Friday in a statement. ICA was using a 30-day grace period that ends Dec. 29. If the company halts payments on all of its $1.35 billion in overseas notes, it will eclipse glassmaker Vitro SAB as the biggest corporate bond defaulter in Mexico since Moody’s Investors Service began tracking the data in 1995.
The announcement caps a year in which ICA posted its biggest quarterly loss in 14 years as the government cut back infrastructure projects and the plunge in Mexico’s peso drove up the company’s leverage. The company will work on a cost-cutting and restructuring plan to be completed by mid-February, advised by Rothschild & Co. and FTI Consulting. ICA appointed board member Alfonso Gonzalez Migoya as co-chief executive officer.
“It will be a complicated process because there is a lot of debt with many different levels of seniority and security,’’ Rafael Elias, the head of emerging-market strategy at Cantor Fitzgerald, said in a note to clients. “There are also many assets with good value over which some may want to fight.’’
ICA fell as much as 28 percent in trading in Mexico City on Friday. ICA’s 2024 bonds dropped by 0.11 cents to 23.47 cents on the dollar at 11:02 a.m. in Mexico City. The notes due in 2021 dropped 0.93 cents to 23.46 cents.
A likely debt exchange with equity incentives may leave bonds with a valuation of 30 cents to 50 cents on the dollar, Elias said in an e-mailed response to questions. A forced liquidation isn’t probable, he said.
In the next two months, ICA has coupon payments looming for its two other dollar bonds maturing in 2017 and 2021, with the first one due Jan. 24. The company reported total debt of 57.9 billion pesos as of September 30.
ICA won’t pay the coupons due in January and February, Monex Casa de Bolsa said in a note to clients on Friday. ICA’s liquidity shortages have created "uncertainty" about its projects, including its backlog, and about the operations of its units, Monex said.
Gonzalez Migoya, who will serve alongside CEO Alonso Quintana, is the former chairman and CEO of Grupo Industrial Saltillo SAB and a former financial executive at Alfa SAB. Chief Financial Officer Gabriel de la Concha will leave the company, to be replaced by Pablo Garcia.
ICA appointed Orlando Loera, a former Bank of America Corp. executive, as chief restructuring officer. He served in a similar role for Corp. Geo SAB, a Mexican homebuilder that defaulted in 2013.
“ICA has made this decision in order preserve liquidity, prioritize ongoing operations and fund projects currently under development,” the company said in the statement. “While this review is ongoing, ICA’s priority will be to serve its clients and to continue providing construction and concession-management services.”
More articles on Debt, Mexico, Bonds
By Brendan Case and Nacha Cattan - 18 dic 2015, 14:47:33
Empresas ICA SAB will skip a debt payment due by the end of the month as Mexico’s biggest construction company veers toward the nation’s biggest default in at least two decades. Stocks and bonds tumbled.
The builder won’t pay $31 million in interest on its $700 million in bonds maturing in 2024, the company said Friday in a statement. ICA was using a 30-day grace period that ends Dec. 29. If the company halts payments on all of its $1.35 billion in overseas notes, it will eclipse glassmaker Vitro SAB as the biggest corporate bond defaulter in Mexico since Moody’s Investors Service began tracking the data in 1995.
The announcement caps a year in which ICA posted its biggest quarterly loss in 14 years as the government cut back infrastructure projects and the plunge in Mexico’s peso drove up the company’s leverage. The company will work on a cost-cutting and restructuring plan to be completed by mid-February, advised by Rothschild & Co. and FTI Consulting. ICA appointed board member Alfonso Gonzalez Migoya as co-chief executive officer.
“It will be a complicated process because there is a lot of debt with many different levels of seniority and security,’’ Rafael Elias, the head of emerging-market strategy at Cantor Fitzgerald, said in a note to clients. “There are also many assets with good value over which some may want to fight.’’
ICA fell as much as 28 percent in trading in Mexico City on Friday. ICA’s 2024 bonds dropped by 0.11 cents to 23.47 cents on the dollar at 11:02 a.m. in Mexico City. The notes due in 2021 dropped 0.93 cents to 23.46 cents.
A likely debt exchange with equity incentives may leave bonds with a valuation of 30 cents to 50 cents on the dollar, Elias said in an e-mailed response to questions. A forced liquidation isn’t probable, he said.
In the next two months, ICA has coupon payments looming for its two other dollar bonds maturing in 2017 and 2021, with the first one due Jan. 24. The company reported total debt of 57.9 billion pesos as of September 30.
ICA won’t pay the coupons due in January and February, Monex Casa de Bolsa said in a note to clients on Friday. ICA’s liquidity shortages have created "uncertainty" about its projects, including its backlog, and about the operations of its units, Monex said.
Gonzalez Migoya, who will serve alongside CEO Alonso Quintana, is the former chairman and CEO of Grupo Industrial Saltillo SAB and a former financial executive at Alfa SAB. Chief Financial Officer Gabriel de la Concha will leave the company, to be replaced by Pablo Garcia.
ICA appointed Orlando Loera, a former Bank of America Corp. executive, as chief restructuring officer. He served in a similar role for Corp. Geo SAB, a Mexican homebuilder that defaulted in 2013.
“ICA has made this decision in order preserve liquidity, prioritize ongoing operations and fund projects currently under development,” the company said in the statement. “While this review is ongoing, ICA’s priority will be to serve its clients and to continue providing construction and concession-management services.”
More articles on Debt, Mexico, Bonds
fabriziof
Forumer storico
vedo ottimismo sul recovery, personalmente ica 2021 l'ho venduta 2 mesi fa a 28,3 per me storia chiusa .
mac
Forumer storico
Prova a chiedere ad IW come fare a negoziarli .... magari ti risponderanno che devi diventare cliente professionale
Orlando 27
Forumer attivo
in breve di che si occupa questa societa epr dare un tasso cosi alto ciao
iguanito
Forumer storico
Non credo. il discorso dell'investitore professionale riguarda la possibilità di acquistare titoli emessi da meno di un anno.Prova a chiedere ad IW come fare a negoziarli .... magari ti risponderanno che devi diventare cliente professionale
captain sparrow
Forumer storico
grossa acciaieria svizzero / tedesca con stabilimenti sparsi in Europa. quando hanno emesso il bond navigavano in acque tempestose, poi è entrato nel capitale un grosso nome, non ricordo quale, con un aumento di capitale, e il bond è schizzato alle stelle. l'anno scorso hanno richiamato il 35%. non ho notizie fresche a parte un profit warning di qualche mese fa e chiaramente le note difficoltà del comparto in generale. hanno un loro sito in cui controllare per notizie
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zoro-aster
Forumer storico
mio PMA con Empresas ICA 89, non pretendo che mi vada di culo come con 3W P ma per mediare e ottenere un prezzo di 38 (senza rischiare l`osso del collo) la quotazione deve scendere a 15 per ora siamo lontani . da monitorare
gualberto
Charlie don't Surf
Prova a chiedere ad IW come fare a negoziarli .... magari ti risponderanno che devi diventare cliente professionale
infatti
da quello che ho capito
per loro quel titolo è in black list perché ritenuto troppo rischioso per la clientela...
mah...
fabriziof
Forumer storico
Qui ci vorrebbe qualche cliente professionale con iw che prova a prenderlo ,io non ho liquidi al momento ...
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