Jul 1, 2009
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Mexico's Comerci says creditors submitted proposal

Jul 1, 2009

MEXICO CITY, June 30 (Reuters) - Mexican retailer Comercial Mexicana (COMEUBC.MX) said on Tuesday 30 June it received a proposal from creditors on how to restructure the company, which defaulted on its debt last year after getting slammed by the global credit crisis.

Photo: www.comerci.com.mx

Comerci, as the company is known, said earlier this month it had agreed in principle with most key creditors the terms to repay its debt, though a final deal had not been reached.

The company also said it had filed countersuits in a New York court against several of its creditors, all of which were part of the preliminary deal. Comerci said its legal action against the firms -- Merrill Lynch (BAC.N), Goldman Sachs (GS.N) and Barclays (BARC.L) -- did not cancel its preliminary deal with them.

In a statement to the Mexican stock exchange late on Tuesday 30 June, Comerci said it was studying the proposal it had received from banks and holders of bonds issued in Mexico and the United States.

"The restructuring process continues favorably," Comerci said.

It did not provide details on the proposal, saying only that it was "similar" to its agreement in principle with key creditors.

Comerci defaulted in October after taking massive losses on extensive derivatives bets. It has fought with creditors ever since. (Reporting by Jason Lange; Editing by Muralikumar Anantharaman)

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