UPDATE 1-Mexico's ICA sells stake in waste firm, in talks with Caisse -sources

(CDPQ in talks with ICA, background)
By Alexandra Alper and Christine Murray
MEXICO CITY, Dec 23 (Reuters) - Mexico's ICA has sold its
stake in an environmental waste firm for around 1.2 billion
pesos ($69.69 million), two people close to the negotiations
said, as the embattled construction company scrambles for cash
after declaring it would default.
ICA sold its 49 percent stake in Proactiva Medio Ambiente
Mexico to a trust run by prominent Mexican businessman Fernando
Chico Pardo, one of the people told Reuters. ICA jointly owned
Proactiva with French water and waste group Veolia VIE.PA .
Gabriel Ibarra, an advisor to ICA Chairman Bernardo
Quintana, confirmed the company had sold Proactiva but added
that it was more focused on helping cash flow by finishing
projects than by selling assets.
ICA is also in talks with Canada's second largest pension
fund, Caisse de depot et placement du Quebec over possible asset
sales, a third person said. ICA declined to comment on this.
The three people declined to be named as the negotiations
were not public. Veolia, Proactiva and Caisse declined to
comment.
Chico Pardo, board president of airport operator Asur
ASURB.MX and head of financial investment company Promecap,
closed the deal with ICA in the last few days, the people said.
Chico Pardo did not respond to requests for comment.
ICA ICA.MX had already sharpened its focus on asset sales
before saying on Friday it would not pay $31 million due on an
interest payment at the end of November, and that it aimed to
draw up an initial restructuring plan by mid-February.
But it is unclear if the sales will be enough to right the
company, whose net debt reached 51.147 billion pesos ($2.97
billion) at the close of the third quarter - almost nine times
its earnings before interest depreciation and amortization.
ICA has interest payments due of $6 million on Jan 24 and
$22.25 million on Feb 4. It also risks so-called cross-default,
since missing some payments could allow banks to demand
immediate payment on loans, according to a company filing.
The company has been reluctant to let prized assets go.
Co-Chief Executive Alonso Quintana said ICA was not planning
to sell more of its 33.35 percent stake in airport operator OMA
OMAB.MX after offloading 2.9 percent in August. He has vowed
to sell 5 billion pesos of assets in 2016, as in 2015.
In April, Caisse said it would pay 3 billion pesos for a 49
percent stake in Mexican infrastructure joint ventures with ICA.
ICA is also pressuring the government for payment. ICA
executives have met with finance ministry officials to ask for
payment on accounts receivable of about 20 billion pesos, though
some is for work not yet completed, two sources said.
($1 = 17.1944 Mexican pesos)
($1 = 1.3845 Canadian dollars)