Durango misses first coupon on 13¾% notes

New York, Jan. 16 - Corporacion Durango said it did not pay the coupon due Jan. 15 on its 13¾% senior notes maturing 2009.

The Durango, Mexico company noted that it was a 30-day grace period for the non-payment becomes a default.

Durango priced $175 million of the notes on June 18. The Jan. 15 interest payment would have been the first.

As previously announced Durango is working with financial advisors, Rothschild Inc. and PriceWaterhouseCoopers Inc. on evaluating alternatives to implement a "long-term solution to its capital structure and debt service requirements that will provide it with the appropriate level of financial flexibility."

Durango said it expects to start formal discussions with creditors shortly.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.