Mexico City, October 18th, 2007 - Grupo Bimbo, S.A.B. de C.V. today announces the resolution of legal proceedings in favor of the Company.
On September 13th, 2006, Grupo Bimbo published the following announcement :
“Mexico City, September 13, 2006 - Grupo Bimbo, S.A. de C.V. informs that yesterday it learned that certain bondholders of the Argentinean company Compania de Alimentos Fargo, S.A. ("Fargo") are attempting to put Fargo into an involuntary Chapter 11 case before the United States Bankruptcy Court for the Southern District of New York (the “Court”). Furthermore, in related filings before the Court, said bondholders have requested discovery against, among others, Grupo Bimbo and certain of its affiliated entities for the stated purpose of investigating whether Fargo would have claims against such entities. Grupo Bimbo believes that such actions are an improper attempt to interfere with ongoing “concurso” proceedings in Argentina and the exercise of legitimate creditors' rights in that jurisdiction. Accordingly, Grupo Bimbo will oppose the efforts of the bondholders and will vigorously contest any alleged claims against Grupo Bimbo.
On this matter, the Company reports that on October 12th, the Court dismissed the effort to put Fargo into involuntary Chapter 11, considering it an improper action. Furthermore, the Court dismissed diverse claims and requests against Grupo Bimbo and its affiliates. The Company has been informed that Fargo is still bound by the “concurso” proceedings, pursuant to the laws of Argentina.