TV Azteca, the company led by Mexican TV, retail, and banking magnate Ricardo Salinas Pliego, announced on Tuesday that it was unable to reach an agreement with bondholders in the United States regarding past-due payments amounting to tens of millions of dollars.
In a statement, TV Azteca expressed the need for a restructuring of bonds due in 2024 due to unfavorable business conditions. The company disclosed that it had been engaged in court-ordered mediation with bondholders since September, but unfortunately, the parties were unable to find a consensual resolution.
This dispute involves approximately $400 million worth of bonds, with $105 million in payments being overdue. Despite this setback, it is important to note that Salinas Pliego is no stranger to being in the public eye. He frequently showcases his extravagant lifestyle on social media, portraying a life filled with luxurious yachts and expensive vehicles. Additionally, Salinas Pliego does not shy away from expressing his opinions and criticizing political figures with sharp words.
According to the company’s statement, the bondholders demanded the immediate payment of $105 million as part of any agreed-upon deal. In return, they offered a restructuring plan that would extend the repayment deadline until 2030 – providing a six-year extension from the original maturity date.
TV Azteca Facing Financial Challenges
TV Azteca, one of Mexico’s leading broadcasters, is experiencing financial difficulties due to the combined impact of the coronavirus pandemic, a decline in advertising, and ongoing challenges within the TV broadcasting industry and Mexico’s economy. To address these issues, the company has proposed a financial solution that includes a $45 million initial payment and an extension of the bonds’ due dates for a period of six to eight years.
Despite these struggles, TV Azteca’s owner, Salinas Pliego, seems to be disconnected from the company’s reality. On social media, he recently shared updates about his leisure activities, such as a trip to New York City and his plans to participate in art auctions. He even flaunted his luxurious possessions, including a yacht and private plane, proudly proclaiming the rewards of his hard work.
Coinciding with TV Azteca’s 30th anniversary, Salinas Pliego made an extravagant offer to give away a lavish mansion and luxury cars as a gesture to celebrate the occasion.
Salinas Pliego is known for his controversial presence on social media, where he frequently launches incendiary attacks against political and public figures. He has had contentious clashes with the government and consistently mocks a congresswoman from the ruling party in Mexico, resorting to derogatory comments about her weight and referring to her as “a pig.”
Despite the allure of Salinas Pliego’s lifestyle and his provocative online persona, the underlying financial challenges faced by TV Azteca remain a significant concern. The company must navigate this difficult landscape to secure its future amidst a rapidly changing media industry and economic conditions in Mexico.