Alfa is the largest private company in Mexico, financed heavily by foreign, US Dollar denominated, debt; however, given the rapidly depreciating value of the Mexican Peso against the US Dollar, Alfa has been left unable to meet its credit payments, and in breach of its contractual obligations on its loan agreements. As a result, the company is now left with only two options; declare bankruptcy or undergo significant capital restructuring. In this case, the company would prefer to undergo a capital restructuring program, and would have to convince the stakeholders concerned to not opt for immediate payments through legal bankruptcy proceedings. It will, obviously, be achieved by suggesting restructuring as a more attractive alternative.
3. Restructuring Proposal