Mexico’s Comerci seeks vote on debt restructuring

* Supermarket moves ahead on debt restructuring

* Case could be major test of insolvency laws

MEXICO CITY, May 27 (BestGrowthStock) – Supermarket operator
Controladora Comercial Mexicana called on Thursday for a
shareholders’ meeting on June 11 to approve its plan to
restructure its debts in a test of the county’s insolvency
laws.

Comerci, as the country’s No. 3 supermarket operator is
known, said it will put to a shareholder vote a proposed deal
with creditors as well as a motion to seek a debt restructuring
through Mexico’s insolvency law, the company said in a filing
with the stock exchange.

The company is expected soon to announce that it has
reached a deal with a majority of its creditors. Comerci
suffered more than $2 billion of derivatives losses at the
height of the financial crisis in 2008.

The case could become the first major test of Mexico’s
overhauled insolvency laws as Comerci aims to present a
“prepackaged” deal with creditors that could cut time to only a
few months, compared with previous cases that have taken years
to be resolved in court.

Comerci shares (COMEUBC.MX: ) rose 2.84 percent to 11.60
pesos. Its shares have gained more than 10 percent in the last
two sessions.

A successful prepackaged deal would be a major step for
Mexico, where large multinational companies typically try to
avoid restructuring in the courts and often spend years in
out-of-court negotiations with lenders in New York, Dallas or
Madrid.

Stock Market Trading

(Reporting by Michael O’Boyle and Gabriela Lopez in Monterrey,
editing by Gerald E. McCormick)

Mexico’s Comerci seeks vote on debt restructuring