MexCAT Ad Hoc Bondholder Group Concerns Regarding Amended and Restated Tender Offer and Consent Solicitation

The ad hoc group of holders of bonds issued by the Mexico City Airport Trust (MexCAT) represented by Hogan Lovells and Houlihan Lokey (the “MexCAT Ad Hoc Bondholder Group,” or the “Group”) was not consulted in connection with MexCAT’s amended and restated tender offer and consent solicitation dated December 11, 2018 (the “Amended Proposal”).

The Amended Proposal requires bond holders to evaluate the Amended Proposal on a truncated timetable that is half that afforded by the original proposal issued on December 3, 2018. The Group believes that the early tender deadline should be extended to at least December 21, 2018. The Group also believes that any consents provided by bondholders in connection with a tender should be limited to the amount of any bonds actually purchased, and should not apply to all bonds held by the bondholder.

While the Group recognizes that the Amended Proposal makes incremental improvements, fundamental problems remain such that the Group cannot support the Amended Proposal in its current form. In particular, notwithstanding the additional proposed event of default relating to alternative airports together with a failure to meet a debt service coverage ratio, absent additional collateral (such as from alternative airports or otherwise) to compensate for the removal of the originally agreed Texcoco collateral protection, bondholders remain without effective substitute sources of payment. The Amended Proposal’s terms are insufficient to compensate for the reduction or complete elimination of passenger volume at the Benito Juarez airport to be expected over time as a result of the opening of such alternative airports. Additionally, the Annexures A & B to the Amended Proposal describe a removal of the existing cross-defaults between existing series of MexCAT bonds, which is inappropriate and should be clarified if unintentional.

The Ad Hoc Bondholder Group, consisting of a group of large international investment institutions, still desires, and looks forward to, discussing its concerns and proposed resolutions with MexCAT.

The international law firm Hogan Lovells, including partners Ron Silverman (New York) and Federico De Noriega (Mexico City), and Houlihan Lokey, have been retained as advisors for the MexCAT Ad Hoc Bondholder Group. To contact Houlihan Lokey please email


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