February 13, 2019 / 5:22 AM / 5 days ago

Mexico City Airport Group agrees to pay $1.77 billion to investors

MEXICO CITY (Reuters) - The government-run Mexico City Airport Group (GACM) said on Tuesday it has agreed to pay some 34 billion pesos ($1.77 billion) to investors who hold shares issued by a trust created to help finance the construction of the now-canceled airport.

The agreement would allow investors in the securities linked to the ditched project to get at least some of their money back.

President Andres Manuel Lopez Obrador announced the cancellation of the partially-built $13 billion airport in late October, dismissing the project as tainted by corruption and too costly.

Some $6 billion worth of debt had been issued for the project.

“With this (deal), GACM and the Mexican government are saving the investment of those who save through Afores (pension funds) and other investors,” GACM said in a statement.

The statement added that the liquidation of the investment trust created to help fund the airport would take place on Feb. 28.

Reporting by Noe Torres; Editing by Jacqueline Wong

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