But this would not be enough to meet one of its biggest commitments: settle the financial debt which it has with its more than 120 creditors such as Huawei, Nokia, Telmex, Promtel, American Tower and others, which amounts to 29 thousand 811.8 million pesos. While the company billed 6,000 million pesos in 2023 and this year it is expected to register double its income.
To prevent Altán from falling into an operational risk, as happened during the pandemic, causing it to enter into bankruptcy, the government has decided that the Federal Electricity Commission (CFE) is responsible for controlling and, above all, for absorb the company’s total debt.
Within the document called ‘Project Quetzal’, of which Expansion has a copy, it is assured that Altán’s ‘bankruptcy debt’ would be paid in more than 20 years, which “would be subject to financial, market and execution risks of the company, which makes the payment of the bankruptcy debt uncertain.”
When Altán achieved its financial restructuring in 2022, the company stipulated that payment to each of its 120 creditors would be made in tranches divided into W, X and Y, each corresponding to the relevance and speed of payment. This would lead the company to pay off its total debt by 2056. But the CFE has proposed a new scheme with the aim of “immediately settling” the company’s financial commitment.
The state-owned company has suggested settling only 10% of the debt for companies in the W tranche, such as Mexico Tower Partners or Hispasat Mexico. This would mean a 90% reduction in liabilities; while for the X tranche, where the firm NTT Data Mexico is located, only 33% would be covered; while those in the Y tranche, where almost the majority of creditors are located, would receive 100% of the balance of the Bankruptcy Debt.
José Sagredo, a lawyer at GLZ and a specialist in bankruptcy proceedings, believes that the decision to have CFE absorb and control Altán would be a result of the government’s ongoing attempt to “save” the company from new financial problems and from its own creditors.
Currently, the appeal filed by Nokia against Altán for alleged modifications that the latter has made to the bankruptcy agreement that had already been signed by the creditors is still pending, leaving a possible court order to annul the financial restructuring and thereby return the Red Compartida to bankruptcy.
“I think it is important for the government to protect the company, especially because it must be remembered that it is a key piece for its connectivity objectives,” said Sagredo.
It is not yet clear whether all the companies that signed the bankruptcy agreement have accepted the CFE’s proposal. But what is highly probable, says Sagredo, is that several companies will decide to challenge the new move by the state-owned CFE.
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