Desarrolladora Homex Restructures Under New Mexican Bankruptcy Laws

November 04, 2015

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.

Latin America partners Joy Gallup and Michael Fitzgerald led the Paul Hastings team, which also included of counsel Pedro Reyes and foreign associate Adriana Colliers Fuertes.

At Paul Hastings, our purpose is clear — to help our clients and people navigate new paths to growth. With a strong presence throughout Asia, Europe, Latin America, and the U.S., Paul Hastings is recognized as one of the world’s most innovative global law firms.