(Adds details on bondholder dispute)
MEXICO CITY, Dec 19 (Reuters) - Mexico’s finance ministry said on Wednesday that a revised offer to repurchase bonds issued to fund a partly-built airport received resounding support from investors, which could end a tense dispute.
Earlier this month, Mexico initiated a buyback offer for $1.8 billion of $6 billion in bonds issued to fund the project. But a group of investors rejected the deal.
After revising the proposal on Dec. 11, the Mexico City Airport Trust (MEXCAT) received offers and consent from a “substantial majority” of the holders of the notes of each one of the series, the finance ministry said in a statement.
“The offer has received overwhelming support from MEXCAT bondholders,” the ministry said.
It did not disclose the percentage of bonds that would be repurchased in each series.
The dispute with bondholders came as little surprise after President Andres Manuel Lopez Obrador announced a few weeks before taking office that he would scrap a $13 billion new airport for the capital.
His move to ditch the country’s largest infrastructure project touched off a major sell-off in Mexican assets.
Under the modified offer, the airport trust said it would buy notes at a fixed price of $1,000 per each $1,000 principal of notes tendered, up from between $900 and $1,000.
The modified proposal was also rejected by the investor coalition, known as the MexCAT Ad Hoc Bondholder Group. But the finance ministry said it would not sweeten the deal again. (Reporting by Sharay Angulo; Editing by Christine Murray and Richard Borsuk)