Dina Defaults on Interest Payment
The Mexican Stock Exchange temporarily suspended trading in shares of Consorcio G Grupo Dina SA after the bus and truck maker said it would miss a $6.5 million interest payment which is due today. The payment was originally due Jan. 16, and had a grace period of 30 days. The shares of the Mexican truck maker will be suspended for no more than 60 days, the Mexican Stock Exchange said. Dina said yesterday it would default on the interest payment of the $164 million bond. Dina CEO Gamaliel Garcia said the company has scheduled a February 28 meeting with bondholders to start debt restructuring talks. Dina is currently in litigation with Western Star Trucks, suing for breach of contract, in the Paris-based International Arbitration Court of the International Chamber of Commerce. Freightliner Corp., upon buying Western Star Trucks, cancelled a contract for the delivery of 9,000 Class 7 trucks that Dina has with Western Star. Dina had already delivered 600 trucks under the contract.
