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LatinNews Regional Monitor: Mexico - 13 December 2018

In brief: Mexico

* Lawyers representing holders of bonds issued by the Mexico City airport trust (Mexcat) to finance the new Mexico City international airport project (NAIM) have rejected the latest improved offer made by Mexico’s finance ministry (SHCP) to buy back their bonds. Following the announcement by Mexico’s President Andrés Manuel López Obrador that his government will cancel the NAIM project, there has been speculation that the holders of the US$6bn in bonds issued to raise funds for the project could sue the Mexican government for failing to honour the bonds. López Obrador tried to dispel these concerns by promising that his government would buy back the NAIM bonds and settle any legal disputes related to the cancellation of the project. The SHCP initially offered to buy back the bonds at 90% of the face value but after this was rejected by some bondholders it improved the offer by agreeing to pay the full face value. However, US law firms Hogan Lovells and Houlihan Lokey, which say that they represent clients who hold over 50% of NAIM bonds, have rejected this improved offer and called for the SHCP to negotiate a new offer with them.

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