Mexico’s ICA Says Debt Threatens Its Future as a ‘Going Concern’

Empresas ICA SAB, the Mexican construction company that defaulted on $1.35 billion in bonds last year, said its debt woes may prevent it from continuing as a “going concern.”

The builder said it may be forced to seek court protection from creditors if restructuring talks are unsuccessful. Creditors could also pursue involuntary reorganization proceedings, ICA said in a U.S. regulatory filing Tuesday.

“Our insufficient liquidity could severely impact our ability to continue as a going concern,” it said, using language that didn’t appear in a similar document last year. ICA’s future “could also be affected by our overall inability to pay our debt and other payment obligations, such as taxes and secured credit arrangements,” according to the filing.

The company is trying to restructure its liabilities after carrying out Mexico’s biggest bond default since at least 1995, when Moody’s Investors Service started tracking the information. ICA’s audited loss for 2015 was 20.4 billion pesos ($1.1 billion).

“Our future is dependent on our ability to refinance or restructure our indebtedness successfully,” the builder said in the filing. “If we are required to liquidate our operations, the holders of our debt and our shareholders will likely incur a significant loss.”

Shares of the company have fallen 17 percent this year after tumbling 80 percent in 2015.

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