Bloomberg News

Comercial Mexicana Climbs After Bank Deal Reported

January 19, 2009

Controladora Comercial Mexicana SAB (COMERUBC), the supermarket chain that faces more than $1 billion in currency derivative liabilities, gained the most in a week after Excelsior said it may have reached an agreement with banks.

Comercial Mexicana rose 2.9 percent to 3.22 pesos in Mexico City trading. The company’s shares have gained 8.1 percent this year, while Mexico’s Bolsa (MEXBOL) index has dropped 8.9 percent. The stock plunged 89 percent in 2008.

The Mexico City-based company may today announce an agreement with banks that keeps them from taking legal actions during a so-called “standstill” period, Excelsior reported. A similar deal was reached with U.S. lenders that are owed money from the derivative transactions, the newspaper said, citing company lawyer Salvador Rocha.

A Comercial Mexicana spokesman wasn’t immediately available for comment.

To contact the reporters on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net.

To contact the editor responsible for this story: David Papadopoulos at Papadopoulos@bloomberg.net


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