Cemex to sell properties to pay debt

Cemex to sell properties to pay debt
Published: 24 March 2009

Cemex is selling properties across Mexico to help pay off its debt amid talks to refinance its maturing bank loans, reports Reuters.

The company published in local papers on Monday its plans to sell properties in the central states of Puebla and Guanajuato for residential, commercial and industrial use.

"They are selling everything they can, everything helps," said an analyst who declined to be named.

Cemex is struggling to repay US$4.1bn in debt maturing this year and faces debt payments in 2010 and 2011 as well.

Cemex says it plans to pay US$3.6bn in debt this year with free cash flow and asset sales, but investors worry it will be hard to sell assets in the current downturn.

Debt rating agencies Standard & Poor’s and Fitch cut Cemex’s rating this month after the company failed to sell a US$500m bond as part of its debt repayment plans.

Source: Reuters