September 25, 2013
By Mariana SantibáñezIn July, Mexico’s largest homebuilder Desarrolladora Homex skipped a payment on its 9.5% 2019 bond.
Homex had worked to avert default in the previous months. In April, it sold its stake in two prisons to Carlos Slim’s IDEAL and Grupo Financiero Inbursa for four billion pesos. It also took out a bridge loan under a new government loan guarantee program.
But that wasn’t enough.
After missing the interest payment, the company faced a series of ratings downgrades, as well as a lawsuit by Barclays and Credit Suisse for $70 million for terminating derivative contracts.
The builder hired JPMorgan to advise it on its strategic options.
Shortly thereafter, two more homebu
As Mexico’s homebuilders wrangle over restructuring agreements with bondholders, the blame game is fierce