Time to Re-Engineer

Time to Re-Engineer

Mexico

In the middle of last year with profits down 84%, Grupo Cydsa, a Mexican textile and chemical conglomerate, sold $152 million-worth of subsidiaries and other assets in a vain effort to keep current on its bank and bond debt. But by October, with its banks pressing for payment and a $200 million bond maturing, the company had to sell its Monterrey headquarters to stay afloat. Cydsa managed to generate $60 million from the sale, and with a decidedly lower profile, the company moved across town and started paying rent. Like many conglomerates in Mexico, Cydsa is majority-owned by a rich family unaccustomed to scrimping on corporate trappings. However humiliating the sale may have been for

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