Mexico's ICA has prepared bankruptcy filing as precaution: sources

By Alexandra Alper and Roberto Aguilar

MEXICO CITY (Reuters) - Mexican construction firm ICA has readied a bankruptcy protection filing in case it fails to restructure its hefty debt load outside of court, people familiar with the matter said, adding the board was meeting on Wednesday to discuss its plans.

ICA, which has defaulted on about $60 million in interest payments since December, is struggling under a multi-billion dollar debt load made heavier by a slumping peso and a cash crunch as government spending on infrastructure has slipped.

A spokesperson for ICA (NYSE: ICA) was not immediately available for comment.

It hired FTI Consulting and investment bank Rothschild to help it engineer business and restructuring plans by mid-February. But the company announced last month that the proposals would not be ready until March.

According to one source, ICA's board, which is presided over by Bernardo Quintana Isaac, was meeting to analyze FTI's business plan and Rothschild's restructuring recommendations.

If ICA cannot reach agreements with its creditors outside of court, it can file for bankruptcy protection, which would allow the company to continue negotiating with its creditors without risk of lawsuits.

The bankruptcy protection filing, which has been ready since January, envisions keeping certain units that hold company assets out of bankruptcy, two sources said. That would allow them to bid for projects.

ICA shares closed up 5.75 percent at 4.6 pesos per share.

(Writing by Alexandra Alper; Additional Reporting by Gabriela Lopez and Cyntia Barrera; Editing by Simon Gardner and Sandra Maler)

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