Mexican Leasing Firm Unifin To Miss Debt Payments, Seek Restructuring Deal
Mexican leasing firm Unifin will miss principal and interest payments on its debt because of limited sources of financing, the company said in a filing to Mexico's main stock exchange.
The decision is effective immediately "and through the period necessary to negotiate definitive agreements with (Unifin's) shareholders in relation to a strategic restructuring," it said in the filing late on Monday.
Unifin shares fell 85% on Tuesday morning to an historic low.
"As a result of this announcement, we're reviewing our previous recommendation," analysts at Mexico's VectorAnalisis said in a note. Their previous recommendation was buy.
Unifin said it hopes to come to an agreement "in the short term" to continue the restructuring process. According to its second-quarter results, it has 79 billion pesos ($3.94 billion) in financial liabilities.
Earlier this year, Unifin reached an agreement with Credit Suisse for a $500 million credit line to be used for corporate purposes, including debt refinancing.
Unifin will continue to comply with "payment obligations under non-recourse private securitization structures," it said.
The Mexican company also said earlier that it had agreed with holders of a $200 million international bond to extend its maturity from August 2022 to May 2024.
($1 = 20.1335 Mexican pesos at end-June)
© Copyright Thomson Reuters 2024. All rights reserved.