Mexico's Homex files bankruptcy, looks to resume building projects

By Caroline Salls

Pittsburgh, May 1 - Desarrolladora Homex, SAB de CV filed a concurso mercantil bankruptcy case in Mexico on Tuesday with the consent of creditors representing the majority of the company's debt, according to a news release.

Through this process, Homex said it expects to obtain the legal protection necessary to implement a restructuring plan that ensures its gradual recovery, with the ultimate goal of ensuring the long-term viability of the company while safeguarding the rights of creditors.

The company said it is looking to maintain existing relationships with employees, suppliers, sundry creditors, the federal government, state and local authorities and mortgage credit institutions to continue operations and preserve the value of the business going forward.

Homex said it intends to secure funding and liquidity necessary to implement its recovery plan, under which it would resume building on 61 housing projects.

Homex is a Culiacan, Mexico-based homebuilder focused on affordable entry-level and middle-income housing in Mexico and Brazil.

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