Grupo Posadas receives court approval to completely restructure its debt | New
MEXICO, December 8, 2021 / PRNewswire / – Grupo Posadas SAB de CV (BMV: POSADASA) (the “Company”) today announced that the United States Bankruptcy Court for the Southern District of new York approved its reorganization plan. This paves the way for the company to quickly emerge from “prepared” legal restructuring proceedings in the United States with a capital structure that is sustainable and poised for long-term success.
The court’s confirmation follows overwhelming support for the Plan by holders of the Company’s 7.875% senior notes due 2022 (the “Existing Notes”), with 100% of voters voting to approve it. This financial solution will reduce the Company’s debt service obligations and extend the maturity schedule of the Existing Bonds by 5.5 years, to December 30, 2027, allowing Posadas Group favor the use of its cash for operating activities in order to preserve jobs and help maintain the high quality for which its hotels are famous.
“With the approval of the plan today, we are approaching the successful completion of the comprehensive debt restructuring that we began a few months ago to maximize our financial flexibility and best manage the challenges of COVID-19. affecting the global hospitality industry, “said José Carlos Azcarraga, CEO of Posadas Group. “We have greatly appreciated the support of all of our valuable stakeholders as we take this crucial final step in strengthening our finances. We look forward to coming out of this process even better positioned to continue operating to the highest standards, opening up exciting new properties as tourism continues to rebound and stay. from Mexico leading hotel operator for many years. “
Under the plan, the existing notes will be canceled and exchanged for new senior notes secured by lien on real property and certain accounts receivable of the Company. All other undisputed claims, including those of suppliers for goods and services provided before and during the legal process, are intact and have been or will be paid in full in the ordinary course or otherwise satisfied. ordinary shares of Posadas Group continue to trade in the normal course.
Additional information
For more information on the Company’s debt restructuring and access to court documents, please visit https://cases.primeclerk.com/posadas/.
The company is represented by Cleary Gottlieb Steen & Hamilton LLP as international legal advisor, Ritch, Mueller y Nicolau, SC as Mexican special advisor, Cantre, García-Cuéllar, Aiza y Enríquez, SC as special advisor in Mexican restructuring and DD3 Capital Partners as financial advisor.
About Posadas
Posadas is the leading hotel operator of Mexico and owns, leases, franchises and operates 186 hotels and 28,888 rooms in the largest and most visited urban and coastal destinations of Mexico. Urban hotels represent 87% of total rooms and coastal hotels 13%. Posadas operates the following brands: Live Aqua Beach Resort, Live Aqua Urban Resort, Live Aqua Boutique Resort, Grand Fiesta Americana, Curamoria Collection, Fiesta Americana, The Explorean, Fiesta Americana Vacation Villas, Live Aqua Residence Club, Fiesta Inn, Fiesta Inn LOFT , Fiesta Inn Express, Gamma, IOH Hotels and One Hotels. Posadas has been listed on the Mexican Stock Exchange since 1992.
Forward-looking statements
This press release contains forward-looking statements. These statements may include words such as “may”, “will”, “expect”, “intend”, “anticipate”, “estimate”, “plan”, “believe” or other expressions. similar. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. These statements are based on Posadas’ current plans, estimates and projections and, therefore, you should not place undue reliance on them. Forward-looking statements involve known and unknown inherent risks, uncertainties and other factors, many of which are beyond Posadas’ control and are difficult to predict. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement, including, but not limited to, the ability to complete a reorganization plan in accordance with under the conditions of restructuring support. Agreement; the risks inherent in the pre-established judicial restructuring procedure (the “Restructuring“), the results of the decisions of the bankruptcy court and of the Restructuring in general and the length of time during which we may be required to operate within the framework of the Restructuring procedure; the effectiveness of the overall restructuring activities in accordance with the Restructuring and any additional strategies we may employ to manage our liquidity and capital resources; and any other restrictions imposed by the bankruptcy court. Forward-looking statements speak only as of the date on which they are made, and we do not not commit to publicly update any of them, whether in light of new information, future events or otherwise.
Investor contact:
Gerardo de Prevoisin, [email protected]
Media contacts:
Kekst CNC (United States)
Sherri L. Toub / Ross Lovern
[email protected] / [email protected]
Zimat Consultores (Mexico)
Francisco Galindo
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THE SOURCE Posadas Group