Famsa Holders Face Long Road in Local Court: Mexico Fixed Income

Grupo Famsa SAB de CV bondholders whose investments plunged 60% when the pandemic erupted had their hopes for a quick restructuring crushed as the firm sought bankruptcy protection in Mexican courts -- a process that could take years.

Famsa was forced to give up on Chapter 11 proceedings in New York after local regulators revoked its banking license, ending it ability to allow customers to buy on credit and making any financing plan untenable. Now Famsa must turn to a process called concurso mercantil.

It’s a step backward for the 50-year-old furniture and appliance dealer, which operates 300 stores across ...