Gruma said to obtain credit to cover liabilities
November 14, 2008
by FoodBusinessNews.net Staff
MEXICO CITY — After falling to a new 52-week low, shares of Gruma S.A.B. de C.V. rallied Nov. 14 amid indications the company had secured a line of credit to cover its currency derivative losses. In early New York Stock Exchange trading, Gruma shares traded as high as $2.44, up 36% from the recent low of $1.79 in Nov. 13 trading. Bloomberg News said Gruma had submitted a statement to the Mexico City Bolsa, informing the exchange that it had secured the credit line and that the funds would be used to unwind its currency positions. In October, the company said it lost MP1,707 million ($133 million) in the quarter ended Sept. 30 because of the currency positions. The currency losses prompted a selloff of Gruma shares, which have traded as high as $14.31 over the past 52 weeks.