Empresas ICA’s $3.5 Billion Restructuring

Cleary Gottlieb represented Empresas ICA, S.A.B. de C.V. and its subsidiaries (ICA) in connection with the restructuring of over $3.5 billion of indebtedness, which was implemented through a Mexican concurso mercantil proceeding with plan de reestructura previo (pre-packaged restructuring plan) approved on March 1, 2018.

The proceeding involved over $1.2 billion of international bonds, with the remainder of the claims composed of local creditors and claims under a rescue financing provided by an international investment fund.

The approval and publication of the convenio concursal constitute the last procedural milestones under the concurso proceeding, thereby concluding a year-long process of negotiations with creditors and restructuring of substantially all of the company’s debt. The restructuring of ICA is the largest insolvency of a Mexican company since 2015, when Cleary represented Casas Geo in its concurso mercantil proceeding.

Following the restructuring, ICA will continue to be one of Mexico’s largest construction companies, with a portfolio of projects that includes such marquee projects as the New Mexico City International Airport.