Cemex's announcement this week that it had fulfilled the minimum acceptance requirements to move forward with its plan to refinance a $7.3 billion loan that was originally due in 2014 has led to short-term share price gains
. Under the plan, which also involves a $1 billion payment next year, creditors agreed to extend maturities on the loan by three years to 2017. The refinancing deal has widely been accepted as integral to the company's ongoing struggle to emerge from a crippling debt that has seen Cemex's stock drop significantly over the past few years
. In all, the past five years at Cemex has been dominated by the sound of it bailing debt overboard. So while the company has averted default and potential bankruptcy, its future still remains mostly unclear. After all, while its debt loads are lessening, the same man (CEO and Chairman Lorenzo Zambrano) who let his ambitions get the best of him some years ago and watched as shareholder equity spiraled downwards remains in firm control of Cemex.
The board is dominated by three of the CEO's family members—cousins Rogelio Zambrano Lozano and Roberto Zambrano Villarreal along with nephew Tomás Milmo Santos
While we continue to give Cemex an overall rating of "D," with risk of the rating being downgraded to an "F," GMI Ratings cautions investors to temper their enthusiasm over the company's new refinancing deals, as the man responsible for the debt burden in the first place, continues to dominate the company's leadership structure.
On 12 May 2014, during a business trip to Madrid, Spain, Zambrano had scheduled a corporate meeting at 7 pm local time. After failing to show up, he was tracked down by members of his staff and found dead inside his third-floor suite at Hotel Villa Magna.[18][19]
His sudden death due to a cardiac arrest at the relatively young age of 70 took news outlets and business associates by surprise.[11] Cemex issued a carefully worded press release reassuring clients and investors that business operations would continue normally and that its board of directors —composed mostly by people with no relation to his family[20]— would elect a successor in the following days
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Cemex's announcement this week that it had fulfilled the minimum acceptance requirements to move forward with its plan to refinance a $7.3 billion loan that was originally due in 2014 has led to short-term share price gains
. Under the plan, which also involves a $1 billion payment next year, creditors agreed to extend maturities on the loan by three years to 2017. The refinancing deal has widely been accepted as integral to the company's ongoing struggle to emerge from a crippling debt that has seen Cemex's stock drop significantly over the past few years
. In all, the past five years at Cemex has been dominated by the sound of it bailing debt overboard. So while the company has averted default and potential bankruptcy, its future still remains mostly unclear. After all, while its debt loads are lessening, the same man (CEO and Chairman Lorenzo Zambrano) who let his ambitions get the best of him some years ago and watched as shareholder equity spiraled downwards remains in firm control of Cemex.
The board is dominated by three of the CEO's family members—cousins Rogelio Zambrano Lozano and Roberto Zambrano Villarreal along with nephew Tomás Milmo Santos
While we continue to give Cemex an overall rating of "D," with risk of the rating being downgraded to an "F," GMI Ratings cautions investors to temper their enthusiasm over the company's new refinancing deals, as the man responsible for the debt burden in the first place, continues to dominate the company's leadership structure.
http://www.businessinsider.com/cemex-cemented-in-debt-or-the-zambrano-family-2012-9
On 12 May 2014, during a business trip to Madrid, Spain, Zambrano had scheduled a corporate meeting at 7 pm local time. After failing to show up, he was tracked down by members of his staff and found dead inside his third-floor suite at Hotel Villa Magna.[18][19]
His sudden death due to a cardiac arrest at the relatively young age of 70 took news outlets and business associates by surprise.[11] Cemex issued a carefully worded press release reassuring clients and investors that business operations would continue normally and that its board of directors —composed mostly by people with no relation to his family[20]— would elect a successor in the following days
https://en.wikipedia.org/wiki/Lorenzo_Zambrano
was this some kind of wet work by the board?