ICA hires JP Morgan to advise on restructuring debt

New York, May 13 - Empresas ICA Sociedad Controladora, SA de CV said it has hired JPM Morgan Securities, Inc. to advise on restructuring its debt including its subordinated convertible bond due 2004.

The Mexico City-based engineering and construction company said in a filing with the Securities and Exchange Commission the goal is to make its debt service consistent with its medium-term business perspectives.

ICA also noted that the El Cajon hydroelectric project contract, which it won in the first quarter, will not generate free cash flow until completion and delivery to the client. Because it will require the use of cash and the pledging of assets as collateral, it will further strain the company's liquidity in the short term, the SEC filing said.

The $96.3 million of outstanding 5% convertibles mature in March 2004.

In December ICA borrowed Ps 1.183 billion with a maturity of 2012 and a step-up interest rate starting at 14.5%. Proceeds were used to repurchase $70.8 million of the convertibles.

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