MEXICO CITY (Reuters) - A group of investors holding bonds issued for a new Mexico City airport that President Andres Manuel Lopez Obrador has canceled said on Wednesday that it cannot support an amended bond buyback because problems still remain despite improvements to the plan.
The Mexico City Airport Trust, which is overseeing the buyback, on Tuesday said it would offer investors a better deal to repurchase bonds issued to finance the project, which Lopez Obrador scrapped to pursue a cheaper alternative.
The bondholder group, which says it represents more than half the $6 billion principal amount issue, also said it still wants to discuss its concerns with the airport trust.
One concern is that the new plan does not provide additional collateral to compensate for removal of the originally agreed collateral protection of the initial airport plan.
“Bondholders remain without effective substitute sources of payment,” the group said in a statement.
Mexico launched a buyback offer for the $1.8 billion of debt issued to fund the airport earlier this month, which the bondholder group rejected.
The trust on Tuesday revised the plan, saying it would buy notes at a fixed price of $1,000 per each $1,000 principal of notes tendered, rather than at prices between $900 and $1,000 per each $1,000 principal.
It also offered additional protections for holders to address concerns about the terms of the notes after the completion of the offers.
Reporting by Dave Graham and Daina Beth Solomon; Editing by Sandra Maler and Richard Borsuk