With this agreement Salinas Pliego goes against Total Play’s international creditors. Mexico News | mexico news

Mexico City.- The foreign investors and creditors Total Play, a Mexican internet service provider, was hit last week when its owner, Ricardo Salinas Pliego, struck a deal with local holders that left them at an disadvantage in the event of the company’s bankruptcy, Bloomberg reports. Went.

According to reports, The company entered into a private deal with a group of Mexican investorsLed by Grupo ICEL, a higher education operator in Mexico, to exchange its bonds for new secured bonds maturing in 2028. The action surprised international holders of Total Play bonds maturing next year.

Why did Salinas Pliego want a deal with Mexican investors?

Total Play Bonus They were already among the worst performers in the markets Emerging markets and exchange announcements this year led to additional declines in its value, reaching as low as 50 cents per dollar. The company later promised to offer a similar deal to global bondholders, with covered bonds offering higher coupons, which helped offset some of the losses, with prices stabilizing around 54 cents on Tuesday. .

Balanz Analyst in Buenos Aires, juan jivelekianstated that this agreement Highlights the company’s priority for local investors and lack of transparency with international holders.

This highlights the company’s preference for non-traditional local investors and a lack of transparency with international holders,” Juan Jivelekian, an analyst at Balanz in Buenos Aires, explained in a note.

Who are the main creditors of Total Play?

Non-Banking Lender ICEL Group has been made An important lender for Total Play, which now represents 43% of total loans compared to 25% earlier. Furthermore, now secured loans accounts for 66% of the company’s debtThat compares to 56% recorded at the end of the third quarter, according to credit analyst Eduardo Nieto. JPMorgan Chase,

Despite the possibility that the remaining Bonds are exchanged on favorable termsNieto warns about necessary precautions, Given that the higher cost of debt may result in cutbacks And worse conditions for future agreements with a broader base of holders.

While there is a possibility that the remaining 25 could be exchanged on favorable terms, we remain cautious as we believe the higher cost of debt will likely lead to future cuts and worse terms for a broad-based deal. May have to face. Forks,” says Nieto.

To date, representatives of Salinas, Total Play and ICEL Group Reforma did not respond to requests for comment.

This agreement has increased concern among people Total Play’s international lenderWho are facing an uncertain situation due to the preference given by the company to local investors and ambiguity in its financial operations.