July 27, 2020
Bondholders risk incurring losses of 35% to 65% from a debt restructuring by Mexican hotel operator Grupo Posadas, Moody's said in a report on Thursday.
Posadas said late last month that it would not make a coupon payment for $15.5 million on its 7.875% 2022 bonds. Moody's said in the report that the missed payment constitutes a default, consistent with Posadas' Ca rating.
Travel restrictions and social distancing measures imposed during the coronavirus pandemic have caused a sharp drop in earni
Investors face a haircut of 35% to 65% from the Mexican hotel operator's 2022 bonds, Moody's says