Mexican hotel chain Grupo Posadas files for Chapter 11 in U.S.

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Signage is seen at the United States Bankruptcy Court for the Southern District of New York in Manhattan, New York City, U.S., August 24, 2020. REUTERS/Andrew Kelly

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MEXICO CITY, Oct 26 (Reuters) - Mexico's Grupo Posadas (POSADASA.MX) has filed for Chapter 11 bankruptcy protection in a U.S. court, the hotel chain said on Tuesday, after its business was hit by the global coronavirus pandemic.

The "pre-agreed restructuring procedure" of Chapter 11, filed in the Southern District of New York, is expected to be complete in about 60 days, Posadas, one of Mexico's biggest hotel groups, said in a statement to the Mexican stock exchange.

The debt restructuring, first announced two months ago, is part of Posadas' efforts to "maximize our financial flexibility and better manage the challenges related to COVID-19," chief executive Jose Carlos Azcarraga said in the statement.

The company said its hotels will continue to operate without interruption.

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Reporting by Noe Torres, writing by Cassandra Garrison Editing by Dave Graham

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