A grueling eighteen months after talks began, Grupo Minero Mexico (GMM) has closed the restructuring of nearly US$900 million in debt, including roughly US$450 million of paper backed by mining exports. "The banks, bondholders, and the company came slowly together...we were able to cut through the posturing and arrive at a tolerable situation," said Michael Brown, senior associate at Bingham McCutchen, which represented the export note holders. About two-thirds of the total debt was folded into a bullet maturing in 2007, the rest was rescheduled into a 2007 with amortizations starting March 2004.
The structured export notes (SENs) included about US$200 million of MBIA-wrapped 2004s, US$75 million of 2007s, and US$180 million of 2011s. All the debt was restructured on a pari passu basis, a source said. Sidley Austin Brown & Wood advised the company, while Mayer, Brown, Rowe & Maw was counsel for the bank creditors, which was led by Bank of America and included private and government institutions from the U.S., Europe and Mexico, according to sources. FTI Consulting acted as financial advisor on the structured side, while PricewaterhouseCoopers was the counterpart for GMM.