Dina Defaults on Interest Payment
Mar 1, 2001 12:00 PM
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. The payment originally was due Jan 16, 2001, and had a grace period of 30 days.
Shares of the Mexican truck maker will be suspended for no more than 60 days, the Mexican Stock Exchange said.
Dina said it would default on the interest payment of the $164-million bond. Gamaliel Garcia, chief executive officer of Dina, said the company had scheduled a 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, canceled a contract for delivery of 9,000 Class 7 trucks that Dina has with Western Star. Dina had already delivered 600 trucks under the contract.
