Mexico City, November 29, 2007 - Grupo Bimbo, S.A.B. de C.V. announces that yesterday, Compañía de Alimentos Fargo, S.A., the Argentine company in which Grupo Bimbo holds a 30% equity stake, came to a reorganization agreement with its primary creditors who represent the majority of verified debt, the investment funds Rainbow Global High Yield, The Argo Capital Investors Fund SPC, Argo Global Special Situations Fund Segregated Portfolio and The Argo Fund Limited.
The agreement includes the payment of 33.81% of the general verified debt.
In addition, the Bondholders have committed to work with Fargo to end the legal injunction under which it has been operating since June 2002, as well as to undertake no further legal actions against the Company.
As such, Grupo Bimbo considers the aforementioned agreement to be very positive, representing an important advance in Fargo’s definitive restructuring process.