MEXICO CITY, April 15 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 homebuilder said
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 nearly 50
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
"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.
Homex shares fell 13.9 percent to 13.53 pesos. Geo dropped
nearly 13 percent, and Urbi declined nearly 11 percent.
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.