Most Mexican conglomerate, active tourism, real estate, and steel, faces a difficult macroeconomic environment, since the peso crisis of December 1994. Conglomerate had extensive dollar-indexed liabilities and fell into crisis when Mexian peso lost half its value against the dollar in late 1994. Even if the majority of its revenues were also indexed in dollars so allegedly granting foreign exchange hedge, most customers conglomerate were Mexican citizens. With the ensuing recession in 1995, the revenue base has dried up, but the dollar obligations still outstanding. The case covers the period from late 1994 to February 1995, and is engaged in financial and operational decision that Sidek had to face at the time. "Hide
by Kenneth A. Froot, Alberto Moel Source: Harvard Business School 21 pages. Publication Date: September 17, 1996. Prod. #: 297022-PDF-ENG
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