Case ID: 292008     Solution ID: 6364     Words: 594 Price $ 75

Grupo Industrial Alfa S A 1982 Case Solution

Case Solution

The quick deterioration of the peso in 1982 encouraged an emergency at Grupo Alfa, Mexico's biggest privately owned business. The organization's peso income was inadequate to benefit its extensive dollar-designated obligation. Students are approached to define an arrangement for rebuilding Alfa's obligation in the connection of Mexican laws representing property and loan bosses' rights. To do this, students must settle on a business procedure, make monetary projections and comprehend members' arranging qualities and shortcomings. Showing goal: notwithstanding the fundamental components of a substantial corporate rebuilding, the case highlights the parts played by governments and lawful frameworks. Gives a valuable complexity to U.S.- style restructurings.

Excel Calculations

·         1982 Total available assets for Bankruptcy (Millions)                                       

·         Consolidated Cash Flows from Current Company Operations (millions)                                                  

·         Consolidated Cash Flows from Operations after Proposed Restructuring (millions)

·         Net Cash Available for Debt Repayment

·         Total Payments to the Banks

·         Present Value of Total Payments

·         Discount Rate

Questions Covered

1.       Introduction

2.       Bankruptcy

3.       Restructuring Proposal