translated from Spanish: I get tired, goose | THE DEBATE

in his speech in the public square Saturday, President Andrés Manuel López Obrador was very emphatic about where the new airport is to be built. There was no change of signal. In St. Lucia, as determined after a consultation citizen, two tracks would be built, and Texcoco, where originally would be, will be a graveyard of cement and iron. On Sunday, the first Council of administration of the Group airport of the city of Mexico, under new management, agreed to keep the works while a new revaluation is made. What the new Government will do is to gain time and maneuver to get their task without financial involvement. The key lies in the second page of the draft of the minutes that transcended the Sunday morning – final has nuances, which designates this Monday to issue a takeover bid in New York per thousand of $ 800 million. I.e., does not mean that Texcoco airport will be completed, but will continue to work until they manage to remove the contingency of a class action lawsuit – called Class Action – from bondholders that were offered and purchased through the stock exchange of Values in New York.Se unknown how many and which foreign funds would be involved in the class-action lawsuit. Some of these funds have made public their participation at the airport in Texcoco. For example Paul Hastings LLP, a global law firm, announced in 2016 and 2017 two tenders for a total of six million dollars to finance the construction of the airport in Texcoco, on behalf of Citigroup Global Markets, HSBC Securities and J.P Morgan Securities, whose cancellation could accelerate the bonus payment and interest. Several managers of funds traveled to the city of Mexico after the cancellation of the work in Texcoco to know how to solve the new Government losses for breach of the contract, but there who addressed their concerns. After the frustrated efforts began to prepare a class action to be presented as soon as the Government of President López Obrador officially cancelled the work in Texcoco. The decision to continue the works was a first step to avoid legal action. Go buy the bonds held by the funds, is a strategic action. Otherwise, it could face the new Government is a situation similar to that experienced Argentina when in 2011 he failed payments by 132 billion dollars in borrowing, in the midst of an economic crisis that led to riots and violence in the streets they produced the death of 39 people. The Argentine Government restructured the debt and 93% of the bondholders accepted the terms of the negotiation. That 7% of the bondholders claimed the Argentine Government in a long dispute in the Court in New York where in October 2012, the judge determined that Argentina had to pay 100% of the debt. The Government of Cristina Fernández appealed, not paid, and went two years more litigation, who finally lost in a case called “vulture funds”, then that in the process they came to garnish your assets abroad. Bondholders received almost five billion dollars, and when less a case, it is estimated that his return was mil 500 per cent over the original investment, deepening the economic crisis which received Government Mauricio Macri. This precedent is the context of the decision taken by the Government of Lopez Obrador and avoid a collective judgment in New York, where it would reside that litigation because the stock system gives you that competition. The decision, therefore, is strategic. The new administration of the Group airport of the city of Mexico, under the direction of Gerardo Ferrando, will keep active work and contracts while the Government is buying back bonds held by international funds. MIL $ 800 million will not be enough, so it can be expected higher bids. The problem is that stages and the cancellation costs will increase by slower to advance the work, they will conclude. This, however, don’t seem to mind the López Obrador President, when least for now. The bet must be by the fiber E and afores, to continue funding the airport “Benito Juárez” and works construction in Saint Lucia, which in the draft budget for 2019 does not have resources assigned. Afores Pensionissste, Inbursa, and Banorte XXI participated in the issuance of the fiber and with an investment of 30 billion pesos, which also brought together institutional and private funds, banks and insurance companies. It will not be something easy to achieve, for the loss of value that will have to absorb the scale of the project, but being Mexican companies that have a high number of contracts with the Government, guarantees that there will be no claims or litigation. The postponement of the cancellation of the work in Texcoco and the offer of buying bonds, nor is a simple way and has to explain well in Mexico. The perception that President López Obrador backtracked is wide. Communication has to be aimed at two markets simultaneous and precise, without margins to the confusion: the home, particularly those who opposed Texcoco, which ratifies that the cancellation is final; and markets, that before stopping the work, be paid what was invested. The two coexist and are not mutually exclusive, must not be forgotten. In this note:

Original source in Spanish