The rapid depreciation of the peso in 1982, caused a crisis in Grupo Alfa, the largest private company in Mexico. Peso company's cash flow was not sufficient to service its large dollar debts. Students were asked to develop a plan for restructuring the debt of Alfa-Bank in the context of Mexican laws of property and creditor rights. To do this, students need to decide on a business strategy to make financial projections and negotiators understand the strengths and weaknesses. Teaching Purpose: In addition to the basic elements of a large corporate restructuring, the case highlights the role played by governments and legal systems. Provides useful contrast to American-style restructuring. "Hide
by Steven R. Fenster, Rajiv Gharalia Source: Harvard Business School 17 pages. Publication Date: July 2, 1991. Prod. #: 292008-PDF-ENG
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