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Mexico's Tribasa Advances Strategic Plan, Lowers Debt
MEXICO CITY -- Mexican construction concern Grupo Tribasa SA, Wednesday said it had paid down $341 million in debt since late last year, when it announced a plan to tackle its heavy debt burden.
Tribasa's plan calls for $546 million in debt reduction, restructuring of $140 million in debt, cost cutting and the sale on non-core assets.
The company (GTR), which had reported cash-flow problems, said it has received two thirds of a 1.78 billion Mexican peso ($188.7 million) capital injection. Tribasa said the 71% of the agreed capital received so far included share subscriptions by U.S. energy concern Enron Corp. (ENE), Mexican banks Grupo Financiero Interacciones, Grupo Financiero Inbursa and Grupo Bursatil Mexicano, as well as controlling shareholders.
Earlier this year, Enron took out the equity option when it lent Tribasa $27 million and entered a strategic alliance with Tribasa to pursue energy projects in Latin America. Tribasa said last week that Enron's engineering and construction unit plans to exercise its option for an equity stake, and that Enron shareholders will vote on the proposal Oct. 31.
Tribasa said the capitalization is expected to be completed by the end of July, and that it plans to complete the debt reduction in the third quarter of this year. The company said it has restructured $100 million in debt over three years, and has sold assets for about $15 million.
The company is also negotiating the refinancing of fixed assets for $150 million, which would mean additional resources of $50 million, Tribasa said.
In addition to financial restructuring, Tribasa said its board of directors is going through changes as well. Representatives from the state-run export development bank, Banco Nacional de Comercio Exterior, or Bancomext, have joined the board and representatives of other new partners will soon join it, said Tribasa.
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