Unifin, a company dedicated to leasing in Mexico, declared bankruptcy on Tuesday to continue with its financial restructuring plan, so in the coming weeks it will present a proposal that it will negotiate with its creditors.
The company, with more than 29 years dedicated to leasing and factoring to small and medium-sized companies (SMEs), has a total debt with a cost of 79,355 million pesos, as reported by the non-banking financial institution itself in its report for the second quarter of 2022 .
In a statement sent to the Mexican Stock Exchange (BMV), the financial institution said that on November 8, the First District Court for Bankruptcy Matters in Mexico City admitted the voluntary request for declaration of commercial bankruptcy.
With this, the company seeks to establish, as soon as possible, agreements with its creditors and implement a plan to restructure its liabilities “in an orderly and supervised manner”, with the assistance of the Federal Institute of Commercial Bankruptcy Specialists (Ifecom).
“Unifin and its restructuring advisors continue to design a final value-maximizing restructuring proposal and the business plan that has been preliminarily presented to creditors, to be implemented within the commercial bankruptcy proceeding,” the company said in a statement. the notice to the market.
This decision shook its negotiations on the Mexican Stock Exchange, with which it lost 130 million pesos in market capitalization only this Tuesday. Its listing was even suspended during intraday operations in the stock market.
Its shares slipped to 1.14 pesos at the close of the session, equivalent to a drop of 20.28 percent. With this, the papers of the financial firm have plummeted about 97% during this 2022, since at the beginning of January it was trading at 37.46 pesos per unit.
Protect yourself from legal action
The company chaired by Rodrigo Lebois Mateos, assures that the decision to declare bankruptcy was to “protect its operations and assets” from possible legal actions by its creditors.
“The bankruptcy procedure and the precautionary measures granted will prevent creditors from initiating or continuing with legal actions and resources that could compromise or put at risk the orderly restructuring process and harm the interests of interest groups,” he said.
Unifin added that it continues to evaluate financing opportunities to minimize the disruption in operations, finances and to have immediate liquidity to implement its restructuring plan.
Until August, the company reported that in the following 12 months, 26.5% of its total debt – around 21,000 million pesos – had maturities. On that same date, he had only 5,305 million pesos in cash.
It will be until next November 29 when updates on the figures could be known, since it is the committed date for the delivery of its financial report for the third quarter of this year, since its publication was postponed because it has focused on financial restructuring.
Likewise, the lessor explained that 64.5% of its liabilities with cost were denominated in dollars and 35.5% in pesos. While 26% was fixed at a variable rate.
On this last point, Manuel Zegbe, senior analyst at Signum Research, explained a few months ago, in an interview, that the interest cost of Unifin’s debt has a “relatively low impact” due to the current increases in the reference interest rate. of the Bank of Mexico.
negative outlook
The rating agencies Fitch Ratings and S&P Global Ratings maintain the company with a “Negative Outlook” and its notes were placed, in June, on scale three and four below investment grade, respectively.
Last August, the lessor surprised the market with the announcement that it would not pay the interest and principal of its debt, as it would seek to negotiate with its creditors, due to the complicated environment in which it operates, with limited access to financing, one of its main sources to continue granting loans.
It had previously completed a private securitization for around 500 million dollars and agreed with the holders of its international bond for 200 million dollars due in 2022, to extend the payment term to May 2024.
As of June this year, Unifin reported a total portfolio of 76,158 million pesos and an overdue portfolio index of 4.6 percent. Its clients, both in the lines of leasing, factoring, automotive credit, structured financing, added a total of 11,800.
Unifin joins the case of other players in the non-banking financial institutions sector, such as Alpha Credit and Crédito Real, which are also undergoing financial restructuring.
In a report, the rating agency S&P stated that the conditions for the non-banking financial sector were already challenging due to the maturity profile of stock market debt in the coming years and because investor confidence was eroded.
judith.santiago@eleconomista.mx
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