Mexico homebuilder Homex files for bankruptcy, seeks financing

MEXICO CITY Thu May 1, 2014 12:35pm EDT

MEXICO CITY May 1 (Reuters) - Troubled Mexican homebuilder Homex has filed for bankruptcy after gaining the support of a majority of its creditors, the company said on Thursday.

The Culiacan-based company, which has struggled with a heavy debt load and slumping home sales, said it was seeking additional financing during the bankruptcy proceedings.

Mexican homebuilders have been hit hard since the government shifted to a policy in the last few years that gives priority to subsidies for apartment purchases by new home buyers, hurting sales of cheap houses built by Geo, Homex, and Urbi.

In March, rival Geo, formerly Mexico's biggest homebuilder, filed for bankruptcy in a deal that replaced most of its debt with stock. (Reporting by Alexandra Alper; Editing by Jeffrey Benkoe)

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