GICSA Announces Developments on COVID-19 Mitigation Measures

MEXICO CITY, April 24, 2020 (GLOBE NEWSWIRE) — GRUPO GICSA, S.A.B. de C.V. (“GICSA”) [BMV: GICSA], a Mexican company specialized in the development, investment, commercialization and operation of shopping malls, corporate offices and mixed-use properties, announces developments on COVID-19 mitigation measures with respect to our financial situation, negotiations with our stakeholders and upcoming meetings of holders of our local bonds (certificados bursátiles).
In light of the current circumstances and the impact of the COVID-19 pandemic, we foresee significant challenges in our liquidity. In order to maintain such liquidity and protect the continuity of our business, we have commenced negotiations with certain credit institutions, local bondholders and other financial stakeholders, to adjust the conditions of various financing agreements to the current economic circumstances.We have entered into standby agreements with certain financial institutions and local bondholders identified with ticker symbols “GICSA 15”, “GICSA 16U”, “GICSA 17”, “GICSA 18U” and “GICSA 19”. We anticipate that the common representatives will call for local bondholders’ meetings in the near future, at which we will propose, among other things, the ratification of standby agreements, approval of amendments to certain covenants and a standstill on the enforcement of certain obligations. A majority of the local bondholders have informed that they intend to support the proposal. In addition, discussions have taken and will continue to take place with domestic and foreign lenders. We have also reached out to the principal holders of the senior secured bonds issued by Trust 2400, and the junior PIK bonds issued by Trust 4377 in each case, sponsored by us. We have commenced discussions with certain of such holders and we intend to continue to discuss measures to preserve the ongoing financial health and liquidity of the issuer trusts.Our management is focused on preserving liquidity and maintaining the operability of the business under the most favorable conditions possible. To that end, in addition to the measures described above, we are analyzing various alternatives to mitigate the impact that the pandemic is having and may continue to have on our results and the value of our assets. However, at this point, we cannot estimate with any degree of certainty the extent of the effects on our business in the medium or long term resulting from the pandemic and related regulatory and policy measures. The nature and magnitude of the impact on our business will depend, among other factors, on the duration and scale of the pandemic; the federal and state regulatory and discretionary measures adopted in Mexico; the impact on our employees, customers and suppliers; the costs and availability of financing and capital facilities; and the general performance of the economy on a global and local scale.We will take all necessary measures to safeguard our operations and business with a long-term view for the benefit of all our stakeholders by adapting to the challenging financial and economic circumstances caused by unforeseen events and seeking to maintain the value of our assets in order to honor all our financial obligations and preserve value for our investors.Forward looking statements
This press release may contain forward-looking statements and involve risk and uncertainty. The words “estimates”, “anticipates”, “projects”, “plans”, “believes”, “expects”, “seeks” and similar expressions, are intended to identify forward-looking statements. GICSA warns readers that declarations and/or estimates mentioned in this document, or stated by GICSA’s management team, are subject to a number of risks and uncertainties that could be in function of various factors that are out of GICSA’s control. Future expectations reflect GICSA’s judgement at the date of this document. GICSA reserves the right or obligation to update information contained in the report or derived from it. Past or present performance is not an indicator of future performance. GICSA warns that a significant number of factors may cause actual results to differ materially from estimates, objectives, expectations, and intentions expressed in this report. Neither GICSA nor any of its subsidiaries, affiliates, directors, executives, agents or employees may be held responsible before third parties (including shareholders) for any investment, decision, or action taken in relation to the information included in this document, or by any special damage or similar that may result. GICSA provides no assurance that the transactions described herein will be consummated or as to the ultimate terms of any such transactions.About GICSA
GICSA is a leading company in the development, investment, commercialization and operation of shopping malls, corporate offices and mixed used well known for their high-quality standards, which transform and create new development spaces, lifestyles and employment in Mexico, in accordance to its history and executed projects. As of December 31, 2019, the Company owned 16 income-generating properties, consisting of ten shopping malls, five mixed use projects (which include five shopping malls, five corporate offices and one hotel), and one corporate office building, representing a total Gross Leasable Area (GLA) 910,707 square meters, and a Proportional GLA of 771,624 square meters. Since June 2015, GICSA is listed on the Mexican Stock Exchange under the ticker (BMV: GICSA B).