Su Casita pays interest to debt holders as it prepares new exchange offer

Friday, March 25, 2011

Troubled Mexican non-bank mortgage lender Hipotecaria Su Casita said it would pay debt holders 1.78mn pesos (US$149,000) in interest on its CASITA 07 issue as it prepares a new exchange offer.

The terms of the agreement reached between Su Casita and its debt holders said the lender would continue to pay interest on the debt, but would not make payments on principle as it is searching for a solution to its difficult situation.

Su Casita plans in the next few days to present its debtors with an adjusted debt-for-equity exchange offer, through which it hopes to avoid bankruptcy, according to several Mexican newspaper reports.

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