As a follow up to its announcement on February 19 that the conditions to drawing the remaining undrawn commitments of the Tranche 2, under the senior secured superpriority multi-tranche debtor in possession term loan facility, had been met and that the company had formally requested such final disbursement, Grupo Aeroméxico, S.A.B. de C.V. announced that it has received such final disbursement in the amount of US$625 million.
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Mexico
A lawyer for Frontera Holdings LLC, the owner of a natural gas plant near the U.S.-Mexico border, told a judge on Tuesday that it could face fines in Mexico after it was unable to provide electricity for several days due to the brutal winter storm that hit Texas, but that it intends to proceed with its proposed restructuring as planned, Reuters reported. Frontera attorney Matthew Fagen of Kirkland & Ellis told U.S.
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Mexico President Andres Manuel Lopez Obrador announced new tax benefits for Pemex as the beleaguered state oil company seeks to reverse long-term production declines and reduce debt, Bloomberg News reported. Petroleos Mexicanos will get an additional 14% credit stimulus to apply to the taxes it pays on hydrocarbons capped at 73.3 billion pesos ($3.6 billion) for this year, according to a presidential decree. The new benefit comes in addition to previous measures that reduced Pemex’s profit-sharing duty from 65%, to 58% in 2020 and 54% in 2021, respectively.
Mexico President Andres Manuel Lopez Obrador announced new tax benefits for Pemex as the beleaguered state oil company seeks to reverse long-term production declines and reduce debt, Bloomberg News reported. Petroleos Mexicanos will get an additional 14% credit stimulus to apply to the taxes it pays on hydrocarbons capped at 73.3 billion pesos ($3.6 billion) for this year, according to a presidential decree. The new benefit comes in addition to previous measures that reduced Pemex’s profit-sharing duty from 65%, to 58% in 2020 and 54% in 2021, respectively.
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Mexico is preparing a significant tax break for its state-owned oil firm while the constitution blocks it from taking on debt to increase social spending during the pandemic, Finance Minister Arturo Herrera said in an interview, Bloomberg News reported. Lowering the state’s demands on Pemex, its biggest taxpayer, could help the oil giant reorder its finances as it struggles with a $110.3 billion debt load, sinking production, and some of the highest tax obligations of any oil company in the world.
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Mexican airline Aeromexico, which is undergoing a chapter 11 restructuring process, on Tuesday posted a loss in the fourth quarter of last year, taking yet another hit from the coronavirus pandemic’s drain on global tourism, Reuters reported. The company reported a net loss of 9.72 billion pesos ($487 million) in the October to December period, with passenger capacity down nearly 48% from the same quarter a year earlier. It also reported losses in the first three quarters of 2020, including a slimmer loss of $130 million in the prior period.
Mexico’s second-largest movie theater chain, Grupo Cinemex SA, is closing its cinemas indefinitely and is working with banks to restructure at least $230 million in debt, Bloomberg News reported. Cinemex, owned by the family that controls copper miner Grupo Mexico, is closing in on a deal with banks including Banco Bilbao Vizcaya Argentaria SA, HSBC Holdings Plc, Banco Santander SA and Bank of Nova Scotia.
Mexico’s central bank unanimously voted to cut its key interest rate to the lowest point since mid-2016, leading economists to forecast more easing ahead as the country desperately needs stimulus, Bloomberg News reported. Banco de Mexico, led by Governor Alejandro Diaz de Leon, chopped borrowing costs by a quarter point to 4% on Thursday, after core inflation remained stable in January, despite overall price increases accelerating above expectations. The cut was predicted by 16 of 22 economists surveyed by Bloomberg. The remaining six expected a hold.
Mexico’s government plans to seek more than $500 million from Canadian miner First Majestic Silver Corp in what it says are owed taxes for artificially keeping its silver prices low over the past decade, two sources told Reuters. Audits dating back to 2010 show that the company owes about 11 billion pesos ($534.36 million), the sources said. So far, Mexico’s Tax Administration Service, or SAT, has sought 5.5 billion pesos ($267.18 million) in tax debt, with the remaining half of the total yet to enter into formal disputes, according to the sources.
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Mexico’s economy last year suffered its biggest annual contraction since the 1930s, although it recovered better than expected from the ravages of the COVID-19 pandemic during the final quarter, preliminary data showed on Friday, Reuters reported. Gross domestic product in Latin America’s second-biggest economy tumbled by 8.5% last year in seasonally adjusted terms, according to the estimate issued by national statistics agency INEGI. The fall was slightly shallower than the consensus forecast in a Reuters poll for an 8.8% decline.
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