Fox News Latino - Facing pressure from legitimate manufacturers and international brands, Mexican officials are now going after clothing vendors that they say circumvent tax laws and erode the country’s bottomline.
By Michael Bathon
Satelites Mexicanos, the Mexican satellite company, won court approval of its restructuring plan allowing it to exit bankruptcy protection this month.
U.S. Bankruptcy Judge Christopher Sontchi approved the Mexico City-based company’s pre-negotiated reorganization plan giving noteholders cash and equity at a hearing today in Wilmington, Del. The noteholders agreed to support the restructuring before the company sought bankruptcy.
Satmex, as the company is known, listed $441.6 million in assets and $531.6 million in debt as of March 23 in Chapter 11 documents filed April 6.
“We are very pleased to have a successful restructuring,” Chief Executive Officer Patricio Northland said in an interview after the hearing. The plan gives Satmex “a sustainable capital structure” that will allow the company to provide customers with uninterrupted service and continue investing in future satellites, he said.
Satmex issued $325 million in notes bearing 9.5 percent interest to fund certain payments under its restructuring plan. The notes will also help fund operations once it exits court protection, which is planned for May 26, according to a May 2 statement.
The satellite operator will pay first-priority noteholders, owed about $238.2 million, and unsecured creditors in full in cash, according to the plan. Second-priority noteholders, owed about $201.9 million, will split 7.15 percent of the reorganized company’s stock and get the right to participate in the offering for 85.75 percent of the new equity, which will raise about $96.25 million.www.businessweek.com/news/2011-05-11/satelites-mexicanos-wins-court-approval-of-turnaround-plan.html
In just four years, Monterrey, a manufacturing city of 4 million people 140 miles from the Texas border, has gone from being a model for developing economies to a symbol of Mexico's drug war chaos, sucked down into a dark spiral of gangland killings, violent crime and growing lawlessness.
By engulfing Monterrey, home to some of Latin America's biggest companies and where annual income per capita is double the Mexican average at $17,000, the violence shows just how serious the security crisis has become in Mexico, the world's seventh-largest oil exporter and a major U.S. trade partner.