Grupo Famsa files Chapter 11 bankruptcy to restructure 7¼% 2020 notes

By Caroline Salls

Pittsburgh, June 26 – Grupo Famsa, SAB de CV filed Chapter 11 bankruptcy Friday in the U.S. Bankruptcy Court for the Southern District of New York to implement an agreement under which it will restructure its outstanding 7¼% senior notes due June 1, 2020, according to a company news release.

The company received support from the holders of the 2020 bonds.

Grupo Famsa said it intends to seek expedited approval of the plan, under which holders of 2020 notes who voted in favor of the plan will receive new series A notes and cash equal to $10 per $1,000 principal amount of 2020 notes.

Holders of other 2020 notes will receive new series B notes.

Grupo Famsa said it will continue operating in the ordinary course of business, and the restructuring agreement will not affect any other obligations other than the 2020 bonds. All other claims and interests will be reinstated.

The company said it expects that its current available cash, as well as projected operating cash flow will be enough to fund its operations during the short time in Chapter 11.

According to court documents, Grupo Famsa has $1 billion to $10 billion in both assets and debt.

The company’s largest unsecured creditors are Bancomext SNC of Mexico City, with a Ps. 3.4 billion bank loan claim; Multiva of Mexico City, with a Ps. 895.93 million bank loan claim; Trustee Grupo Financiero Monex of Mexico City, with a Ps. 360.41 million local debt claim; Whirlpool Mexico S de RL de CV of Nuevo Leon, Mexico, with a Ps. 239.62 million supplier claim; Radiomovil Dipsa SA CV of Mexico City, with a Ps. 198.67 million supplier claim; Mabe Mexico S de RL de CV of Mexico City, with a Ps. 187.06 million supplier claim; Banco de Bajio of Leon, Mexico, with a Ps. 170.98 million bank loan claim; Intercam Banco SA IBM of Monterrey, Mexico, with a Ps. 15.36 million bank loan claim; Cardif Mexico of Mexico City, with a Ps. 118.48 million supplier claim; and Competition Team Technology Mexico of Tiajuana, Mexico, with a Ps. 68.91 million supplier claim.

Grupo Famsa is a retail company based in Monterrey, Mexico. Its Chapter 11 case number is 20‐11505.

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