CEO Resigns From Mexican Construction Giant ICA
24 February 2016 - 4:30AM
Dow Jones News
MEXICO CITY—Troubled Mexican construction giant Empresas ICA
said Chief Executive Alonso Quintana has resigned to ease the
company's restructuring as it struggles under a mountain of
debt.
The company will organize a board meeting to name ICA veteran
Luis Zá rate to replace Mr. Quintana, who is a grandson of ICA's
founder. Mr. Quintana's father, ICA Chairman Bernardo Quintana,
thanked him for his leadership and dedication to the company, ICA
said in a filing late Monday.
The resignation is the latest in top-level management moves at
ICA, which began with the exit of the chief financial officer in
December.
ICA, which has $1.35 billion in dollar bonds, has been pressured
by a weaker Mexican peso on its dollar-denominated debt as well as
a decline in earnings at its construction division and delays in
payments on government contracts.
ICA has missed a number of interest payments on its debt. It has
hired Rothschild & Co. and FTI Consulting to advise it in its
operational and financial restructuring.
The company said it expects to have a restructuring plan ready
by mid-March and aims to begin talks with creditors once the plan
is approved by the board. It will delay reporting fourth-quarter
earnings until the end of March.
The construction company, founded in 1947, has been intimately
intertwined with Mexico's development, building projects including
subway lines, hydroelectric dams and the Olympic Village used in
the 1968 Summer Games.
ICA has stumbled on some recent projects and failed to win
others. Meanwhile, the Mexican government has been trimming the
federal budget due to lower oil income.
(END) Dow Jones Newswires
February 23, 2016 12:15 ET (17:15 GMT)
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