Financially troubled Mexican construction firm and infrastructure concessionaire ICA has presented its business plan and signed a secured convertible loan agreement for US$215mn with Fintech Europe, it said in separate releases.

Under the plan, which is designed to "get back to basics," ICA will wind down its international and real estate divisions.

The company will also exit its international concession projects that have not yet started, with the construction business being limited to Mexican operations.

The firm also said that the expansion of the concession division will be limited to completing the Palmillas road project, and the company it will study investing in new concessions.

The Palmillas project requires investment of 5.52bn pesos (US$291mn).

ICA said the government needs to invest in the Barranca Larga highway concession as it is not feasible to complete it alone. The road requires investment of 2.02bn pesos.

The company will continue to own a controlling share in Mexican airport operator OMA.


ICA said previously that its debt burden and insufficient liquidity could impact its ability to continue as a going concern.

The company had a debt of 62.5bn pesos at the end of March, according to its 1Q16 earnings report.


Source: BNamericas