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 May 20, 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: May 20, 2004 By /s/ Mayela Rincon de Velasco
Durango, Mexico --------------------------------
Name: Mayela Rincon de Velasco
Title: Chief Financial Officer
CORPORACION DURANGO FILES FOR "CONCURSO MERCANTIL" IN
MEXICO AND ANCILLARY PROCEEDING IN U.S.
Durango, Dgo., Mexico, May 20, 2004 - Corporacion
Durango, S.A. de C.V. (NYSE: CDG / BMV: CODUSA)
("Corporacion Durango"), today announced that it
has filed for "concurso mercantil" in Mexican court
under the Mexican Business Reorganization Law (Ley de
Concursos Mercantiles). The concurso mercantil
process will take place at the holding company level
and, as a result, the operations of Corporacion
Durango's subsidiaries will not be interrupted and
they will continue running as usual.
In a concurso mercantil proceeding, Corporacion
Durango can confirm a financial restructuring plan
with the support of the holders of 51% of its
outstanding debt and such plan would be binding on
all of its creditors. The company anticipates that
it will have the support of a sufficient percentage
of votes to accomplish this goal in an expeditious
manner.
Miguel Rincon, Chairman, commented: "Corporacion
Durango has resorted to the concurso mercantil
process in Mexico for the following reasons:
appropriate jurisdiction, the lower number of votes
required to confirm a financial restructuring,
the fact that all outstanding debt will be frozen
in current Mexican pesos and the fact that the length
of time required to conclude the process is
anticipated to be shorter. We expect to successfully
carry out this process to emerge as a stronger, more
competitive company."
On April 30, 2004, Corporacion Durango disclosed
the terms of an agreement in principle reached with
holders of a substantial portion of the outstanding
principal amount of its senior unsecured debt.
Despite the significant progress made by Corporacion
Durango and such creditors towards advancing the
process of implementing such agreement, one of such
creditors terminated its participation in the
agreement because certain milestones contained
therein had not been achieved.
Corporacion Durango has also commenced in the
United States a case ancillary to and in support of
the concurso mercantil proceeding in Mexico, which
seeks, among other things, to enjoin the commencement
or continuation in the United States of any action or
proceeding against Corporacion Durango, certain of
its subsidiaries or their respective property
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 o f 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
contractsthat 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 basedon information currently available
to its management, Corporacion Durango cannot
guarantee future results or events. Corporacion
Durango nexpressly disclaims a duty to update any
of the forward-looking statement.
CONTACTS
Corporacion Durango, S.A. de C.V.
Mayela R. Velasco Gabriel Villegas S.
+52 (618) 829 1008 +52 (55) 5488 0381
mrinconv@corpdgo.com.mx gvillegas@corpdgo.com.mx
Miguel Antonio R.
+52 (618) 814 1658
rinconma@corpdgo.com.mx