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Mexico: GAM files for
protection from government measure
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South
American Business Group, Northern
Lights
September 26, 2001 |
| Mexico, Sep 25, 2001 (El Economista/SABI via COMTEX) -- Grupo Azucarero
Mexico (GAM) has filed for protection to avoid the expropiation of its
sugar mills as dictated by the Mexican government early this month. GAM
contests that its mills should not be part of the 27-company action. Legal
action will slow down the governmental aim of handing the mills back to
private enterprise in 18 months' time, fully restructured. All 27 firms
were technically bankrupt although GAM's debt to federal government bodies
comes to no more than 3% of the sugar groups' total debt. GAM has invested
Pesso$515mil in its refineries in the last 7 years and it has always
reinvested profits, never paying out dividends. Grupo Santos has had six
mills 'impounded' and also filed for protection against the government
measure last week. The government is setting up a state company to run the
expropriated mills for the near future |
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