SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16
OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 24th, 2004
Durango Corporation
(f/k/a Grupo Industrial Durango, S.A. de C.V.)
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(Translation of registrant's name into English)
Torre Corporativa Durango, Potasio 150, Cuidad Industrial,
Durango, Durango, Mexico
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(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F. Form 20-F [x] Form 40-F
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of 1934. Yes No [x]
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82-_____________.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized. CORPORACION DURANGO, S.A. DE C.V.
Date: March 24th, 2004 By /s/ Mayela Rincon de Velasco
Durango, Mexico --------------------------------
Name: Mayela Rincon de Velasco
Title: Chief Financial Officer
CORPORACION DURANGO REACHES AGREEMENT IN
PRINCIPLE WITH ITS KEY CREDITORS
Durango, Dgo., Mexico, March 24, 2004 - Corporacion Durango, S.A. de C.V.
(NYSE: CDG / BMV: CODUSA) (Corporacion Durango), today announced that it
had reached an agreement in principle with its bank lenders and members of
the Ad Hoc Bondholders Committee, who collectively hold a substantial
portion of its outstanding unsecured indebtedness.
Under the terms of the agreement in principle, the creditors will support
a comprehensive restructuring of Corporacion Durango s unsecured financial
debt. The agreement in principle is subject to certain conditions,
including the execution and delivery of definitive documentation.
Corporacion Durango intends to seek additional creditor support to the
terms of the proposed restructuring as soon as practicable.
Miguel Rincon, Chairman of Corporacion Durango commented: "We are pleased
that our key financial creditors have provided Corporacion Durango with
the support necessary to negotiate the final terms of this proposed
restructuring. This support will permit us to pursue a recapitalization
plan in an orderly manner that ultimately is expected to result in a more
adequate capital structure for Corporacion Durango. The reduced debt and
financing costs produced by the proposed recapitalization will enhance
theliquidity and financial flexibility of Corporacion Durango and its
operating subsidiaries. It is our opinion that the operating subsidiaries
and their stakeholders will not be adversely affected by this process,
which will take place at the holding company level. We are confident
that we will conclude this process as soon as possible."
Corporacion Durango expects in the coming weeks to file a Report of
Foreign Issuer on Form 6-K with the Securities and Exchange Commission
that contains the terms of the proposed restructuring.
Corporacion Durango is the largest producer of containerboard in Mexico
through its division Grupo Industrial Durango, is the largest Mexican
national producer of newsprint through its division Pipsamex, is the
largest manufacturer of corrugated containers in Mexico through its
divisio Empresas Titan, is the largest Mexican national company of
wood products through its division Ponderosa, is the Mexican paper
company with the largest industrial operations in the U.S. through its
division McKinley Paper and is also one of the largestmanufacturers in
Mexico of uncoated free-sheet and multi-wall sacks.
Special Note Regarding Forward-Looking Statements
This press release contains statements that are forward-looking within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Such forward-looking statements
are only predictions and are not guarantees of future performance.
Investors are cautioned that any such forward-looking statements are
and will be, as the case may be, subject to many risks, uncertainties
and factors relating to the operations and business environments of
Corporacion Durango and its subsidiaries that may cause the actual
results of the companies to be materially different from any future
results expressed or implied in such forward-looking statements.
Factors that could cause actual results to differ materially from these
forward-looking statements include, but are not limited to, the following:
the ability of Corporacion Durango and its subsidiaries to continue as
going concerns; their ability to obtain and maintain normal terms with
vendors and service providers; their ability to maintain contracts that
are critical to their operations; their ability to fund and execute their
business plan; their ability to attract, motivate and/or retain key
executives and associates; and their ability to attract and retain
customers.
Additionally, other factors should be considered in connection with any
Forward Looking Statements, including other risks and uncertainties set
forth from time to time in Corporacion Durango s reports filed with the
United States Securities and Exchange Commission. Although Corporacion
Durango believes that the expectations and assumptions reflected in the
forward-looking statements are reasonable based on information currently
available to its management, Corporacion Durango cannot guarantee future
results or events. Corporacion Durango expressly disclaims a duty to
update any of the forward-looking statement.
CONTACTS
Corporacion Durango, S.A. de C.V. The Global Consulting Group
Mayela R. Velasco Mariana Crespo
+52 (618) 829 1008 (646) 284 9407
mrinconv@corpdgo.com.mx mcrespo@hfgc.com
Miguel Antonio R.
+52 (618) 829 1070
rinconma@corpdgo.com.mx