Announcement of IFC to Assist Debt Restructuring of Leading Mexican Food Company April 25, 1988

Nik- nIernational Financc Corporat 11 EASE April 25, 1988 CONTACT. Monique Amaudry Press release No. 88/43 (202) 473-9331 IFC ASSISTS DEBT RESTRUCTURING OF LEADING MEXICAN FOOD COMPANY The International Finance Corporation (IFC) is providing a total of $20 million in loans and equity to support the financial restructuring of Salumi, S.A. de C.V., Mexico's leading producer of processed and fresh meat. This transaction will reduce Mexico's foreign debt by approximately $55 million and help revitalize the country's meat processing industry. IFC, an affiliate of the World Bank, is the largest source of direct project financing for private investment in developing countries. IFC is now increasingly providing financial advisory and corporate restructuring services. IFC has arranged this restructuring of the liabilities and equity capital of Salumi, a subsidiary of Grupo Industrial Alfa, S.A. (GIASA, the holding company of the Alfa Group). The operation is designed to reduce'Salumi's debt to a sustainable level, increase profitability, enhance cash generation and restore corporate growth and investor confidence. ,ae financial restructuring includes a share subscription, also arranged by IFC, of $6 million in new equity by Banca Serfin, S.N.C., one of Mexico's leading commercial banks. For this purpose the Company was listed on the Mexican Stock Exchange. This is the first time that a new listing approval has been provided as part of a major corporate restructuring in Mexico. - MORE - -2- Salumi's facilities, located in 13 of Mexico's 29 states, include ten slaughterhouses and numerous distribution centers, with the main installations consisting of four processing plants for production of hams, sausages and bacon. In total, Salumi employs 5,600 employees. The Company is by far the largest single producer in Mexico, with about 30% of the total processed meat market. - END -