CEMEX and Banks Discuss Renegotiation of Company’s Debt
Top cement maker CEMEX California began talks with core banks in March 2009 on how best to settle the company’s debts, currently pegged at $14.5 billion. To recoup financial stability, CEMEX California intends to restructure the majority of its obligations, both syndicated and bilateral, in bank and capital markets.
To date, CEMEX California has also explored asset sales, among other potential refinancing strategies. In contrast, the company indefinitely reneged on an earlier announcement to make a senior note offering. With intervention from willing lenders, the company was nonetheless able to refinance some of its loan facilities in January.
CEMEX’s financial distress began in 2007 upon its takeover of Australia-based Rinker. CEMEX acquired the company at a most inopportune time, in the advent of the real estate crisis, which foreshadowed the global recession.
Whichever way its refinancing plans goes, CEMEX California would in effect be salvaging over a century of cement-making. Founded in 1906, CEMEX California is present in all five continents across 50 countries, a long way from its beginnings in Mexico, where it is still headquartered. CEMEX California has a comprehensive range of building products, including aggregates. Annually, the company churns out cement by the millions of metric tons and ready-mix concrete by the millions of cubic meters.
