Thunderbird Case

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Case #: 
A02-17-0006 (B) Author Michael H. Moffett



CEMEX of Mexico closed its acquisition of The Rinker Groups of Australia in April 2007 after raising its offer to US$15.85 per share. This represented a 54% premium over Rinker’s closing price prior to the initiation of the hostile offer. CEMEX, in-line with its customary acquisition process, financed the entire purchase with debt. But within a year CEMEX was struggling to service its sizeable outstanding debt as business conditions and financial results declined with the financial crisis of 2008. The company was facing debt service of $5.5 billion in 2009, money which it did not have. CEMEX would need to propose a strong and convincing financial restructuring plan to its creditors if it wished to survive.  

This case has been used in a variety of graduate degree programs to illustrate financial restructuring of a non-financial corporation. Focusing on traditional financial metrics of corporate performance and indebtedness, the case requires the student to propose a financing plan for 2009 that will, hopefully, appease and convince its creditors of its financial solvency moving forward. The primary device used for analysis is the corporate statement of cash flows


Mexico, Australia, USA
12 pages
Published material