Famsa Group informed the Mexican Stock Exchange (BMV) that it filed a voluntary application, under Chapter 11 of the United States Bankruptcy Code, before the Bankruptcy Court for the Southern District of New York in order to obtain authorization for its plan debt restructuring.
“Grupo Famsa intends to seek expedited approval of the plan with a prior restructuring agreement under Chapter 11 as soon as possible.”
“Grupo Famsa will continue operating in the ordinary course of its business without any interruption to its operations and the valuable relationships that the company maintains with its customers, suppliers and creditors“The firm said in a statement.
According to Famsa, the restructuring with a prior agreement under Chapter 11 will not affect any other obligation other than its bonds in 2020, In addition, the company has filed a series of motions in court that will allow Grupo Famsa to continue fulfilling its obligations to all its customers, suppliers and creditors.
“For this purpose, the company anticipates that its current available cash, as well as the projected cash flow from operations will be sufficient to finance its operations during the short period in which Grupo Famsa continues under the provisions of Chapter 11,” he said.
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