Tangelo Provides Update on its Current Situation

MEXICO CITY, April 11, 2023 /PRNewswire/ -- Tangerine Pomelo Group, S.A.P.I. de C.V. (the "Company") (f/k/a Mexarrend, S.A.P.I. de C.V.) (BIVA: TANGELO) today provided an update on its current situation.

As previously announced, the Company continues to work with its financial advisors, Houlihan Lokey, Inc. and Blink Capital Solutions, to prepare an updated business plan and financial model that reflects the Company's current situation and market conditions, and will need to emerge from any debt restructuring with a significantly reduced amount of debt.  

Today the Company announced that as part of its long-term business plan, management envisions a significantly lower scale of business going forward, as compared to the Company's operations in recent years. The reduced scale reflects the Company's base projections following a ramp up from the current level of business and assumes the availability of additional capital to fund the growth of the business.   

The Company continues to work with Kroll Associates Iberia SL to identify the causes of the previously announced write-off of MXN$655 million in its loan portfolio. To date, the Company has not identified the need for any additional write-offs as a result of past accounting errors.  However, in light of market and Company-specific trends and challenges, the Company recognizes its investment portfolio has suffered significant deterioration, and management believes that additional material write-offs and increases in reserves may be required as a result of these trends.

About Tangerine Pomelo Group

Tangerine Pomelo Group, S.A.P.I. de C.V. has grown to become one of the largest independent leasing (asset-based lender) companies in Mexico in the last 25 years. The Company specializes in offering financing solutions to rapidly growing and underserved SMEs for the acquisition of productive assets and equipment to support growth.  The Company provides reliable and competitive funding sources through its four main products: capital leases, financing, operating leases and renting.

Forward-Looking Statements

This press release may contain forward-looking statements that are not based on historical facts and are not assurances of future results.  You should not place reliance on any forward-looking statement contained in this press release.  All forward-looking statements are expressly qualified in their entirety by this cautionary statement.  The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason, except as required under applicable law.

SOURCE Tangerine Pomelo Group, S.A.P.I. de C.V.