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Banks agree refinancing with struggling Cemex

Cemex has agreed a refinancing deal with its creditors, it said yesterday.

The Mexican cement giant has suffered as credit conditions have tightened, and amidst the collapse of the US housing market.

The company said that it had reached agreement to put off the repayment of loans worth $2.2 billion (£1.4 billion), originally maturing throughout 2009 and 2010, to February 2011.

The company, the third largest cement maker in the world, said it had also “received confirmation from the creditors that intend to extend close to US$1.5 billion of the US$3.0 billion syndicated loan facility due in December of 2009.”

It remains in talks on further refinancing work.

Cemex has a net debt of $16.4 billion and struggled earlier this month to lengthen maturities on $418 million in commercial paper, Reuters reported, suggesting the latest moves would ease fears of default.

Further Reading:

Read the Cemex announcement

Read the Reuters report