BMV suspends three issuers for lack of reports

The listing of the shares of Crédito Real, Cadu Inmobiliaria and Grupo Radio Centro were temporarily suspended on the Mexican Stock Exchange (BMV) for not having submitted, within the indicated times, their financial reports corresponding to all of 2021 and the first quarter of 2022.

The BMV announced that the suspension of the shares of the issuers began on June 1 and will continue until they present their corresponding financial reports, as established in the applicable provisions of the stock market.

The companies had a deadline to report, no later than the following 20 business days from May 4, which ended this Wednesday.

Each company explained, separately, that the non-compliance was due, among other things, to the delay in the audit processes by the offices in charge of it.

Jacobo Rodríguez, director of Financial Analysis at Black Wallstreet Capital, said that what is striking about these suspensions is that several issuers, both in the stock market and in the debt market, did not report on time. Before, they were isolated cases.

Although he explained that it is not a generalized problem of the Mexican stock market because the default of each of the issuers responds to different circumstances.

Crédito Real, for example, is going through a financial restructuring and is more focused on reaching an agreement with creditors. In the case of Cadu and Pinfra it was explained by problems with the auditors.

“We don’t know how long it will take to deliver the information, it could be months or even years (as happened with ICA), meanwhile the shareholders or holders cannot operate the titles, which are frozen,” Rodríguez said.

severe financial problems

Crédito Real, a multi-purpose financial company whose shares were suspended with the CREAL ticker symbol, is concentrating on its restructuring. The station explained that it is working with its advisors in the preparation of information determined for 2021, the fourth quarter of 2021 and the first quarter of 2022.

“Crédito Real continues in conversations with its financial counterparties, evaluating options to strengthen its financial position and advance its restructuring efforts to guarantee the continuity of operations,” explained the company dedicated to granting discounted loans via payroll and to small and medium businesses.

On April 28, Crédito Real asked the BMV for an extension to deliver its reports, so once the term expired, its trading on the Stock Exchange was suspended, in accordance with the Securities Market Law and the internal regulations of the BMV.

“This breach is derived from various factors such as the new general provisions applicable to credit institutions that modify the general methodology for determining the preventive estimate for credit risks, which came into force on January 1,” Carlos explained. Alcaraz and Jorge Plácido, specialists in Appalachian Analysis.

They added that the delay was also due to the fact that the auditors are still reviewing the financial statements of Crédito Real and because the company is analyzing alternatives with its creditors “to solve its overdue payment requirements.”

The BMV also applied the temporary suspension in the trading of shares and debt securities series “18” and “19” of Cadu.

The housing developer reported that “it is not yet possible” to deliver its consolidated financial report for 2021, within the extemporaneous period that it requested on April 25 and that expired on May 27.

This is because the audit report on the financial statements has not yet been completed by the independent auditor.

“As soon as the processes are concluded and the independent auditor’s report is issued, Cadu will inform the investing public of such circumstance and the corresponding acts will be carried out,” it stated in its statement published on the BMV.

Another similar case was that of Grupo Radio Centro. The broadcaster announced on April 28 that it was unable to send its 2021 annual report and the financial information audited by the auditor for the fourth quarter of 2021, since it is still under review.

freed her

Promotora y Operadora de Infraestructura (Pinfra), a highway administrator and concessionaire, said that given the delay in the presentation of its 2021 annual report, it took “certain temporary insurance measures” to prevent the listing of its shares from being suspended. .

The company said that it terminated the contract with EY, since the firm “was not in a position to complete the audit process in a timely manner because, as it was a ‘first-year audit’, more time would still be required for an adequate understanding of the accumulated effect of the application of the International Financial Reporting Standards (IFRS, for its acronym in English)”.

judith.santiago@eleconomista.mx