Friday, July 31, 2020

Grupo Radio Centro defaults on payment and offers holders restructuring plan

The company’s proposal, which will be put to the vote next Thursday, contemplates extending the maturity date of said papal workers until November 2029. Grupo Radio Centro (GRC) proposed a new plan to restructure their debt and extend the term of their maturities. until 2029, after it defaulted on May 12 with a payment of 330 million pesos to holders of stock certificates. The broadcasting company explained in a statement that said proposal, along with other reasonable requests, would be put to the consideration of the certificate holders at the Assembly to be held on May 11, in which the holders would vote to postpone the payments. However, the Assembly was postponed and will be held until May 14, to resolve whether the initiative is acceptable.

The total of the stock certificates is per thousand 650.7 million, of which Grupo Radio Centro would amortize 50 percent of the outstanding balance of the CEBURS in a period of 36 months, with a payment schedule of 20 percent in May 2020 ( 330.14 million pesos); 20 percent in May 2021 (330.14 million pesos) and 10 percent in May 202 (for 165 million pesos). The default payment was the first. Now, the company has proposed a new affordable payment plan for holders of stock certificates for 1,650.7 million pesos, in addition to increasing the guarantee package. The plan presented by Radio Centro contemplates extending the maturity of the stock certificates until November 2029; carrying out a first amortization of 200 million pesos, followed by two payments of 150 million each, in December 2021 and 2022, with semi-annual payments of approximately 125 million between interest and principal, until their maturity.

The intention is that it be allowed to meet its financial obligations, without jeopardizing the company’s ordinary operation. The company explained that the measure implemented is due to the COVID-19 health crisis, which has resulted in drastic falls in its company income, considering that the majority of its clients have reduced their advertising budget in an extreme way. . “The health and economic crisis caused by COVID-19 has affected various consumer companies around the world and the country, leading renowned companies in the United States to bankruptcy and severely affecting the results of Mexican companies,” the company explained. it’s a statement.

Private debt issuers account for drops After the deferral and the absence of corporate bond auctions in the Mexican private debt market in the last five weeks, at least two issuers found a window of opportunity to place debt that allows them to refinance or invest in their production processes. However, the failure to comply with the mandatory early partial amortization of the issues of Grupo Radio Centro “RCENTRO” 16, 17 and 17-2, casts a shadow on the national private debt market. And it is that Grupo Radio Centro revealed that it updated a cause for expiration of its stock certificates, derived from the default of the issuer’s payment of the mandatory early partial amortization in the amount of 100 million pesos for series 16; 147.63 million for series 17; and 82.5 million for series 17-2.

By virtue of the foregoing, all amounts payable by the issuer under the stock certificates may be declared overdue in advance, provided that at least one holder or group of holders provides written notification to the common representative indicating their intention to declare past due. The titles are anticipated, the media company said in a statement sent to the Mexican Stock Exchange (BMV).

“The broadcasts of Radio Centro 16/17 / 17-2 have an outstanding amount of one thousand 651 million pesos and maturity in December 2023. It is important to remember that on April 24, HR Ratings revised down the ratings of Grupo Radio Centro and its broadcasts RCENTRO 16/17 / 17-2 to ‘HR C’ of ‘HR BB’ with ‘negative’ observation. Grupo Radio Centro and its issues are also rated ‘mxCCC-‘ by Standard and Poor’s (S&P) ”, commented the Banorte-Ixe Private Debt area. With information from Clara Zepeda

Source El Financiero


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