Bondholders Oppose Mexico Airport Debt Restructuring

Holders of more than $1bn of the bonds issued to finance a new Mexico City airport that President Andrés Manuel López Obrador wants to scrap have rejected an offer by the government to buy back some of the debt, the Financial Times reported. The bondholder group said it could not support the plan, which would also alter the terms of the remaining debt — bonds that currently have a claim on revenues from the new airport. The group said on Wednesday that it had not been consulted before the plan was made public by the finance ministry on Monday and that it “has some concerns such that it cannot support the proposal in its current form”. International investors have zeroed in on the airport issue as a test of Mr López Obrador’s attitude to the financial markets, amid concern the newly sworn-in leftwing president could take the Mexican economy in a more interventionist and populist direction. Read more