Publications
Publications
- July 1991 (Revised December 1993)
- HBS Case Collection
Grupo Industrial Alfa, S.A.--1982
Abstract
The rapid depreciation of the peso in 1982 precipitated a crisis at Grupo Alfa, Mexico's largest private company. The company's peso cash flow was insufficient to service its large dollar-denominated debt. Students are asked to formulate a plan for restructuring Alfa's debt in the context of Mexican laws governing property and creditors' rights. To do this, students must decide on a business strategy, make financial projections and understand participants' negotiating strengths and weaknesses. Teaching objective: In addition to the basic elements of a large corporate restructuring, the case highlights the roles played by governments and legal systems. Provides a useful contrast to U.S.-style restructurings.
Keywords
Currency Exchange Rate; Restructuring; Negotiation Participants; Business Strategy; Financial Crisis; Mexico
Citation
Fenster, Steven R. "Grupo Industrial Alfa, S.A.--1982." Harvard Business School Case 292-008, July 1991. (Revised December 1993.)