Mexico Comerci's creditors want all their money back
By Cyntia Barrera Diaz and Gabriela Lopez
MEXICO CITY, Nov 27 (Reuters) - Holders of around 1.5 billion pesos ($114 million) in local debt of Comercial Mexicana want all their money, without a negotiated reduction, after the troubled retailer defaulted last month.
"They want all (their money) back," a well-placed source with knowledge of the case told Reuters on Thursday.
The No. 3 supermarket chain in Mexico, known as Comerci (COMEUBC.MX), ran into trouble in October when the global credit crisis and a plummeting peso triggered massive losses in its derivatives positions.
Comerci has failed to make payments on local notes held by some 1,000 investors, from funds to individuals, and was expected by analysts to try to negotiate reduced payments.
The source said debt holders do not rule out an out-of-court agreement with Comerci, as long as it does not mean less money.
Despite its troubles, Comerci has been opening more stores and ramped up advertising promotions to keep customers from wandering into rival stores, including leader Wal-Mart de Mexico (WALMEXV.MX) and No. 2 retailer Soriana (SORIANAB.MX).
Comerci has yet to present a reorganization plan that it has promised.
The retailer's creditors include six banks that backed up its trading in derivatives for over $1 billion, five banks that extended loans, as well as bond holders.
The cash-strapped company has made two failed attempts in recent weeks to obtain protection from creditors and is currently fighting in court for a favorable ruling.
A spokesman for Comerci was not available for comment.
Jose Calvillo, in charge of restructuring the company's $2 billion total debt, told Reuters earlier this month the company was evaluating which assets to sell to meet some of its obligations. Those assets could include land reserves to build new stores or real estate companies run by Comerci.
Comerci has been notified of legal proceedings by two foreign banks who want to recover the money they loaned to the Mexican company.
Other Mexican companies, including cement giant Cemex (CMXCPO.MX) (CX.N) and conglomerate Alfa (ALFAA.MX), also took big hits in their derivatives positions in October because of the slumping peso. ($1 = 13.1850 pesos) (Reporting by Cyntia Barrera Diaz; Editing by Marguerita Choy)
