Shares in Mexico's ICA fall after says to use bond grace period

Shares in troubled Mexican construction company ICA plummeted by more than a fifth on Tuesday to their lowest level in more than 13 years after it said it would enter a grace period on a bond payment.

ICA, which has struggled with a heavy debt load and a sharp fall in the peso against the dollar, said it had hired Rothschild as a financial advisor in October to "explore ways to improve liquidity and reduce leverage".

It said at the time it had no intention of suspending payments or declaring bankruptcy.

On Monday the company said it would enter a 30-day grace period after failing to pay a US$31 million coupon due on Sunday.

Trading in the company's stock was stopped on Tuesday just after 1030 local time. The shares resumed trading minutes after and by 1726 GMT were down by more than 23 percent to 4.09 pesos, the lowest price since September 2002.

The shares have lost more than three quarters of their value this year.

Losses at the company, which is one of the largest and best-known construction firms in the country, tripled in the third-quarter.