July 30, 2010 / 9:03 PM / in 7 years

UPDATE 1-Mexicana in talks with creditors, operates normally

* Mexicana in talks with creditors

* Continues operating normally (adds company comments, background)

MEXICO CITY, July 30 (Reuters) - Mexicana de Aviacion, one of Mexico’s two biggest airlines, is in talks with at least 10 creditors in a bid to ease its financial troubles, spokesman Adolfo Crespo told Reuters on Friday.

Mexicana failed to place a $250 million bond earlier this year after a government bank refused to back it up. Volatility from Europe’s debt troubles also throttled demand in Latin American corporate debt markets.

“In May we were denied important financing and that’s why we are now in constant talks with all the banks, all the creditors and all the industry stakeholders to do what we need to do to keep operating,” Crespo said.

The airline has a $123 million loan with Mexican bank Banorte GFNORTEO.MX and another $76 million credit with development bank Bancomext, Crespo said.

He declined to say if Mexicana has defaulted on any of its debt payments.

Crespo said the “critical financial situation” only affects Mexicana de Aviacion, one of several companies under holding Grupo Mexicana which also has regional airlines Click and Link.

The company, a member of the Oneworld alliance, continues to operate normally, but two of its planes remain grounded in Canada after a creditor requested authorities there to halt two Mexico City-bound flights on Thursday seeking details on Mexicana’s debt situation. (Reporting by Cyntia Barrera Diaz and Veronica Sparrowe; editing by Bernard Orr)

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