Alsacia SA, Santiago, Chile's largest bus operator, missed a bond payment and said it will file a debt restructuring plan, according to a report by Bloomberg news. The bus company operates 1,495 buses in the Transsantiago transport system.
The company told Bloomberg in an e-mailed statement that it missed its $39.6-million payment on notes due in 2018 because it needs the money to pay suppliers and employees. The company also said it has reached a preliminary agreement with bondholders, which sent bond prices up.
Alsaica's inability to pay was also caused, in part, by new government regulations, a fall in ridership, and passengers cheating on fares, according to the Bloomberg report.
Alsacia, whose transportation concession runs through 2018, will issue $347.3 million in new bonds due in December 2018. The bonds can be extended if the concession is renewed, according to the Bloomberg report.