Bondholders risk large losses in Posadas restructuring

Bondholders risk large losses in Posadas restructuring

Asset Management Bonds Debt Capital Markets Fixed Income Funds Coronavirus Mexico US

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

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