AlphaCredit Bonds Plunge After Derivatives Accounting Error

April 21, 2021, 6:10 PM

Mexican non-bank lender Alpha Holding SA’s bonds fell more than 40 cents on the dollar Wednesday after the company acknowledged accounting errors that will require it to revise its 2018 and 2019 financial statements.

  • Lender detected “an error in the Company’s accounting for its derivative positions,” according to a statement
  • The errors relate to the company’s allowance for loan losses, reserves for certain accounts receivables, and amortization of certain capitalized expenses
  • Firm “anticipates there will be an impairment of a majority of the MXN 4.1 billion reported as other assets and other accounts receivable in the Company’s September 30,...

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