Loss-making Cydsa will spend $22 million to pay down interest and bondholder dues as the struggling Mexican textiles firm continues to restructure its debt to turn around its business.

Cydsa will hand $7.5m to Mexican banks and another $14.5m to bondholders, Mexican press reported.

The announcement comes after Cydsa won a deal to swap $159 million of bond debt for stock late last month. That move cut Cydsa's total debt to $166m from $375m.

The fibres and chemical textiles maker is reportedly selling assets to boost its fortunes.

Mexico's textiles industry has plunged into crisis amid a thriving black market and cut-throat competition, especially from Chinese importers.

By Ivan Castano.