The rapid devaluation of the peso in 1982 triggered a crisis at Grupo Alfa, Mexico’s largest private companies. The company peso cash flow was not sufficient to serve the large dollar debts. The students are asked to formulate a plan for the restructuring Alfa debt in connection with the Mexican laws and the ownership rights of the creditors. To do this, students must decide on a business strategy, financial projections and make participants understand the bargaining strengths and weaknesses. T. .. Read more »

The rapid devaluation of the peso in 1982 triggered a crisis at Grupo Alfa, Mexico’s largest private companies. The company peso cash flow was not sufficient to serve the large dollar debts. The students are asked to formulate a plan for the restructuring Alfa debt in connection with the Mexican laws and the ownership rights of the creditors. To do this, students must decide on a business strategy, financial projections and make participants understand the bargaining strengths and weaknesses. Teaching Objective: In addition to the basic elements of a major company restructuring, the case highlights the role played by governments and legal systems. Provides a useful contrast to US-style restructuring.
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Steven R. window
Rajiv Gharalia
Source: Harvard Business School
17 pages.
Release Date: 02 July, 1991. Prod #: 292008-PDF-ENG
Grupo Industrial Alfa, SA – 1982 HBR case solution

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