BajaNomad - Loreto Bay takes another hit as Homex struggles with debt

Loreto Bay takes another hit as Homex struggles with debt

Loretana - 5-8-2013 at 12:00 PM

The word is that Homex employees working in Loreto Bay have not been paid for several pay cycles....

Homex bought up the remaining Loreto Bay lots from Fonatur a few years ago, after the Loreto Bay Corporation bankrupted.

MEXICO CITY | Tue May 7, 2013 6:05pm EDT

May 7 (Reuters) - The family that holds a large stake in struggling Mexican homebuilder Homex has been selling shares to meet margin calls on loans, according to a U.S. regulatory filing.

Homex has been struggling amid slowing sales of its out-of-town homes, after it took on heavy debt to build large suburban developments that have fallen out of favor with Mexican homebuyers.

The De Nicolas family's stake in the company shrank to 22.57 percent on May 3 from 27.53 percent last month, according to a filing with the U.S. Securities and Exchange Commission.

Five members of the De Nicolas family, including the chief executive and president of Homex, have sold 16,631,300 shares since April 26 via a trust, according to the filing.

The family sold the shares on five separate days "due to a margin call related to loans disposed initially during October 2007 and 2008," the filing said.

The first sale of shares came on April 26, according to the filing. That was the day after the company reported a sharp drop in first-quarter results after the market closed on April 25.

A spokeswoman for Homex said the company had no information or comment about the family's share sale.

The company's U.S.-listed shares have fallen 23 percent since April 25.

At the end of 2011, the De Nicolas family owned 34.1 percent of Homex shares. Since then, Homex's U.S.-listed shares have lost 68 percent.

Last month, the company said it would delay filing its annual report with regulators this year because it is restating results for 2011 and 2012 under international accounting standards.

Homex's larger rival, Geo, is seeking to reach an agreement with its local debt holders after failing to make a payment due in April.

ligui - 5-8-2013 at 02:59 PM

Time to make on offer ! Lets buy this company and resell the property for more .

Remember Boston Chicken ....

DENNIS - 5-8-2013 at 03:02 PM

Quote:

Originally posted by ligui
Time to make on offer ! Lets buy this company and resell the property for more .

Remember Boston Chicken ....

http://en.wikipedia.org/wiki/Boston_Market

Homex

jimwalker - 5-24-2013 at 04:33 PM

Quote:

Originally posted by Loretana

I can confirm that Homes has not issued any employee pay, not just Loreto, since the beginning of March. Going on 3 months now without pay!

The word is that Homex employees working in Loreto Bay have not been paid for several pay cycles....

Homex bought up the remaining Loreto Bay lots from Fonatur a few years ago, after the Loreto Bay Corporation bankrupted.

MEXICO CITY | Tue May 7, 2013 6:05pm EDT

May 7 (Reuters) - The family that holds a large stake in struggling Mexican homebuilder Homex has been selling shares to meet margin calls on loans, according to a U.S. regulatory filing.

Homex has been struggling amid slowing sales of its out-of-town homes, after it took on heavy debt to build large suburban developments that have fallen out of favor with Mexican homebuyers.

The De Nicolas family's stake in the company shrank to 22.57 percent on May 3 from 27.53 percent last month, according to a filing with the U.S. Securities and Exchange Commission.

Five members of the De Nicolas family, including the chief executive and president of Homex, have sold 16,631,300 shares since April 26 via a trust, according to the filing.

The family sold the shares on five separate days "due to a margin call related to loans disposed initially during October 2007 and 2008," the filing said.

The first sale of shares came on April 26, according to the filing. That was the day after the company reported a sharp drop in first-quarter results after the market closed on April 25.

A spokeswoman for Homex said the company had no information or comment about the family's share sale.

The company's U.S.-listed shares have fallen 23 percent since April 25.

At the end of 2011, the De Nicolas family owned 34.1 percent of Homex shares. Since then, Homex's U.S.-listed shares have lost 68 percent.

Last month, the company said it would delay filing its annual report with regulators this year because it is restating results for 2011 and 2012 under international accounting standards.

Homex's larger rival, Geo, is seeking to reach an agreement with its local debt holders after failing to make a payment due in April.

chuckie - 5-24-2013 at 04:44 PM

Ok

Udo - 5-24-2013 at 04:57 PM

No matter what the Nomads think...

The way that the Mexican economy works in paying their employees, is they (the Mexican workers) don't get paid until after the job is done...regardless of what the work is. Anywhere from construction to fishing co-ops. That is why credit is king (off the bank records, i.e. credit cards). Everyone has a marker no matter where they buy their items. Once the workers get paid, so does everyone else down the road.

Many times, however, when the workers get stiffed...so do the markets, grocery stores, etc.

chippy - 5-24-2013 at 05:28 PM

Quote:

Originally posted by Udo
No matter what the Nomads think...

The way that the Mexican economy works in paying their employees, is they (the Mexican workers) don't get paid until after the job is done...regardless of what the work is. Anywhere from construction to fishing co-ops. That is why credit is king (off the bank records, i.e. credit cards). Everyone has a marker no matter where they buy their items. Once the workers get paid, so does everyone else down the road.

This must be a seperate reality from my Mexico. Oh well carry on udo. Its good to hear from a foreign economist.

chuckie - 5-24-2013 at 05:31 PM

Sure dont work that way here....But what do Iknow?

Terry28 - 5-24-2013 at 05:37 PM

Time to drug test Udo....I have been doing business in Mexico for a long time and I have never run across this....

Udo - 5-24-2013 at 05:54 PM

I'll be in Ensenada this coming Sunday...

Bring on the drug test!

acadist - 5-24-2013 at 06:07 PM

Is Tecate a drug? :biggrin:

Terry28 - 5-25-2013 at 09:56 AM

Udo, We can make it an oral or written test...your choice..................

Bruce R Leech - 5-25-2013 at 10:37 AM

I have been doing business in Mexico for almost 30 years and I know exactly where udo is coming from, he is spot on.

BajaRat - 5-25-2013 at 11:22 AM

Quote:

Originally posted by Terry28
Udo, We can make it an oral or written test...your choice..................

Oh, and welcome Jim.

[Edited on 5-25-2013 by BajaRat]

so these projects are financed on...

neilm81301 - 5-25-2013 at 04:29 PM

..the worker's salaries? Not exactly the 'worker's paradise' I was told of. So the owners/developers just push the debt downstream to the ones least able to fight it? Sounds like 1st rule of sewer design - *stuff* flows downhill.

I bet the guys on the top aren't missing any checks.

When a client of mine wants to string out the bill, I tell'em I have a deal with the bank - they don't survey property, and I don't lend money.

Neil

Quote:

jimwalker - 5-26-2013 at 09:01 PM

Well I don't know about the workers that don't get paid until the job is done because what they owe me is commissions for houses that I sold, and the money has already been collected...so as far as I can tell the job was done...still no pay! :fire: