Cemex’s attempts at restructuring some US$15.5bn in debt may not be enough to stabilise its financial structure and boost investor confidence, reports Business News Americas.
"The firm will likely have to divest assets or issue bonds to strengthen its financial structure, even if it successfully manages to complete its current debt-restructuration plan," construction industry specialist with local financial group BBVA-Bancomer, Francisco Chávez, told BNamericas.
On July 30, local press reported that Cemex had successfully negotiated with 90% of the creditors holding the US$15.5bn debt.
"The company is making progress in its restructuring plan. However, liquidity will continue to be tight, and this is an issue if the firm wants the refinancing process to end well," Chávez said.
The company’s creditors are hinting at a capital increase via a bond issue to further strengthen its leverage ratios and overall debt situation, according to the expert.
"Cemex has not said anything officially about a new bond issue, except that once the refinancing plan is finished and a more comfortable debt amortisation profile is achieved, it will seek financing alternatives," Chávez said.
These alternatives are likely to involve the sale of assets or a capital increase, or a combination of both, he added.