By Amy Guthrie
MEXICO CITY--Troubled Mexican home builder Urbi Desarrollos
Urbanos SAB said on Tuesday that it has filed a prepackaged
bankruptcy plan, after having reached a restructuring plan
supported by most of its creditors.
The restructuring plan would restore Urbi's ability to take out
bridge loans with its bank creditors, inject new capital into the
company and modify terms of existing debt, the company said.
Creditors that signed onto the agreement include Mexican bank
Grupo Financiero Banorte, Prudential Real Estate Investors, Ashmore
Investment Management Ltd. and BlueBay Asset Management LLP, Urbi
said. Creditors that signed on to the plan hold 21.9 billion pesos
($1.55 billion) in Urbi debt, or just over 53% of the company's
total debt.
The company's restructuring plan contemplates the construction
and sale of 10,000 homes in the 12 months following the closing of
the bankruptcy process and more than 29,000 homes a year by
2020.
Mexicali-based Urbi is one of three major Mexican home builders,
along with Mexico City-based Corporación Geo SAB and Culiacan-based
Desarrolladora Homex SAB that struggled with serious cash
restraints for more than a year following a dramatic government
policy shift for Mexico's low-income-housing sector.
Debt troubles brought construction by the three builders to a
virtual standstill. Geo struck a deal with creditors and filed for
bankruptcy in March, followed by Homex in May.
Urbi said Tuesday that its liquidity situation remains
"limited."
A shift in government priorities last year urged builders to
construct more apartments closer to urban areas, which require
larger amounts of working capital up front than the free-standing
homes they were mostly building. The change also left the builders
with unusable land in far-flung areas.
The transition to apartments was complicated by the arrival of a
new government in December 2012, leading to slowed disbursements of
government subsidies and uncertainty about the extent of future
government support for the sector.
Access Investor Kit for Ashmore Group Plc
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=GB00B132NW22
Access Investor Kit for Desarrolladora Homex SAB de CV
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=MX01HO000007
Access Investor Kit for Grupo Financiero Banorte SAB de CV
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=MXP370711014
Access Investor Kit for Desarrolladora Homex SAB de CV
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US25030W1009
Access Investor Kit for Grupo Financiero Banorte SAB de CV
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US40052P1075
Access Investor Kit for Prudential Financial, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US7443201022
Subscribe to WSJ: http://online.wsj.com?mod=djnwires