Desarrolladora Homex Restructures Under New Mexican Bankruptcy Laws
NEW YORK -- Paul Hastings LLP, a leading global law firm, represented Desarrolladora Homex, S.A.B. de C.V., a leading housing developer in Mexico, in connection with the restructuring of approximately $2.4 billion of claims, including $900 million in international bonds. The proceeding consisted of a pre-packaged restructuring plan implemented through a Mexican bankruptcy concurso mercantil proceeding filed by Homex and certain of its subsidiaries. This is the first restructuring of a Mexican public company with SEC-registered securities to be successfully completed in Mexico through a pre-packaged bankruptcy proceeding since the recent amendments to the Ley de Concursos Mercantiles became effective in January 2014.
The pre-packaged restructuring plan included the conversion of unsecured debt into approximately 90% of the reorganized company’s common equity (subject to dilution through certain future issuances) and a new capital investment of approximately $110 million in the form of a convertible loan from a number of creditors, including bondholders and management. The reorganized company’s common shares have been readmitted to trading on the Mexican Stock Exchange, and Homex believes it is well-positioned to move forward with its business plan as contemplated by its plan of reorganization.
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