Grupo Posadas is in breach of payment of 15.5 million to its creditors

Grupo Posadas is in breach of payment of 15.5 million to its creditors

International tourism

Grupo Posadas postpone the payment of 15.5 million us dollars of interest to your creditors to focus their resources in cash to maintain its operations due to the decline of operating income due to the Covid-19.

So has announced in a press release issued to the Mexican Stock exchange (BMV), in which he explains that this instalment corresponds to the interests of its Senior Notes maturing in 2022 and that they should pay the next June 30, but for which you have a month of grace.

“The company has taken to proactively address the decision not to make the interest payment in the amount of approximately $15.5 million of dollars, payable June 30, 2020, with respect to its 7.875% Senior Notes maturing in 2022, and shall not carry out such a payment during the grace period of 30 days,” says the chain.

The company has justified this decision as part of the actions to maintain their operations after the impact of the pandemic Covid-19 and prioritize your cash flow. Also, explains in the press release that this measure will not impact the operation of the company or the plans to reopen their hotels.

Your time has released a message to its staff: “it Is important to mention that this decision will allow the company to preserve the highest number of jobs possible”. Igualente, has noted that we began a restructuring of the capital of the company, for which will count with the advice of DD3 Capital Partners, Ritch Mueller, Heather and Nicolau, and Cleary Gottlieb Steen & Hamilton.

The hotel chain has reopened 114 hotels and is currently preparing for the re-opening of 42 hotels further in the next few weeks of the 179 that operates in Mexico, mostly located in city destinations, with brands such as Fiesta Americana, Fiesta Inn and Grand Aqua.

At the beginning of this month of June, Enrique Calderon, vice president of operations of Grupo Posadas announced that it had been forced to postpone their plans of opening of the hotel Live Aqua in Punta Cana, Dominican Republic, which in the beginning was set for this spring and have had to move to September, as published (Grupo Posadas delayed the opening of its hotel in the Dominican).