Grupo TMM misses principal, interest payments, obtains grace period from court

New York, May 15 - Grupo TMM, SA said it failed to make the principal payment on its 9½% senior notes due May 15, 2003 and failed to pay interest on the 9½% notes and on its 10¼% senior notes due 2006.

The Mexico City-based transportation company also said it has obtained a court order imposing a grace period during which creditors including holders of the two series notes and its receivable securitization trust certificates are prevented from pursuing remedies in Mexico.

Grupo TMM said the legal action is a commercial matter and not a concurso mercantile, a Mexican bankruptcy proceeding.

The action was taken to prevent "the adverse effects of the imminent defaults" on the notes and to give the company additional time to complete the restructuring or refinancing of its debt in an orderly fashion and to preserve its business, Grupo TMM said in a press release.

The company acknowledged its legal obligation to make payment on the obligations and said it cited, among other factors, the efforts it has made in good faith over an extended period of time to restructure its obligations through the exchange offers.

Grupo TMM asked for at least a year of relief from the exercise of remedies by its creditors.

The injunction was granted and an order issued by the court. It will stay in effect until the conclusion of the case on the merits of the claim.

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