UPDATE 1-Mexico's Grupo Famsa seeks Chapter 11 protection

(Adds background on Grupo Famsa)

MEXICO CITY, June 26 (Reuters) – Mexican retailer Grupo Famsa said on Friday it was seeking Chapter 11 bankruptcy protection in the United States and expects to continue normal operations during the process.

In a statement to the Mexican stock exchange, Famsa said it had enough cash on hand to finance its operations while it seeks protection in the U.S. courts.

In late March, ratings agency Fitch Ratings downgraded Famsa’s credit rating, warning that the company was in danger of defaulting if it did not restructure its short-term debt.

Like other companies worldwide, Mexican firms have been hard hit by the coronavirus pandemic. Last week, Mexican airline Aeromexico said it was analyzing its options for restructuring its short- and medium-term financial commitments. (Reporting by Anthony Esposito and Noe Torres; additional reporting by Stefanie Eschenbacher Writing by Julia Love; Editing by Tom Brown)

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