Empresas ICA’s $3.5 Billion Restructuring

August 25, 2017

Cleary Gottlieb is representing Empresas ICA, S.A.B. de C.V. and its subsidiaries (ICA) in connection with the restructuring of over $3.5 billion of indebtedness, to be implemented through a Mexican concurso mercantil proceeding with plan de reestructura previo (pre-packaged restructuring plan) filed by ICA on August 25, 2017 and signed by Fintech, ICA’s largest creditor.

Fintech previously provided $215 million in committed rescue financing to ICA, which is convertible into up to 40 percent of the post-concurso equity of ICA Tenedora, S.A. de C.V., a wholly-owned direct subsidiary of Empresas ICA and sub-holding of the corporate group.

The terms of the pre-packaged plan contemplate that recognized unsecured claims, including ICA’s international bonds, will receive up to 99.99 percent of the equity of ICA Tenedora S.A. de C.V.  The filing of the concurso mercantil represents an important milestone in ICA’s restructuring.

ICA is Mexico’s largest construction company with over 50 years of experience, and has been involved in prominent projects such as the construction of Estadio Azteca and the New Mexico City International Airport.  The restructuring involved simultaneous filings by Empresas ICA and 4 of its subsidiaries.