Mexico's Homex says it is exploring ways to boost liquidity
MEXICO CITY, April 15
MEXICO CITY, April 15 (Reuters) - Mexico's Homex is considering ways to boost its liquidity, including issuing debt and raising private capital, and is working on divesting noncore assets from its tourism division, the troubled homebuilder said on Monday.
Like fellow homebuilders Urbi and Geo, Homex has been hit by a heavy debt burden and increasingly worthless land holdings. Its share price has tumbled more than 40 percent since the start of the year.
The company said in a statement that it was investigating various avenues, such as securing mezzanine loans and raising private capital.
"These have been challenging times, and we're working with the housing authorities, financial institutions and within the company to satisfactorily navigate through this time," said Chief Executive Officer Gerardo Nicolas.
The homebuilders have also suffered because of the government's efforts to bring housing projects into Mexico's city centers and away from the outskirts where the companies have extensive land holdings.
Last week Homex shares sank nearly 10 percent after the company announced it had taken a bridge loan of 144 million Mexican pesos ($11.94 million) from a local bank.
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