March 20 (Bloomberg) -- Corp. Geo SAB filed for bankruptcy, making it the first Mexican homebuilder to seek protection from creditors after the industry collapsed last year amid a shift in government subsidies.
The company said it reached agreement for a prepackaged bankruptcy with a majority of creditors, including six banks and a group of bond investors, Geo said today in a filing. The banks in the agreement include Citigroup Inc.’s Banamex unit, HSBC Holdings Plc, Grupo Financiero Banorte SAB, Grupo Financiero Santander Mexico SAB, Grupo Financiero Inbursa SAB and Banco Bilbao Vizcaya Argentaria SA’s Bancomer unit. The statement didn’t name the bond investors.
Geo and the country’s other two biggest homebuilders collapsed and defaulted on their bonds after President Enrique Pena Nieto’s government curbed subsidies for commuter-town developments, halting home-construction projects and sinking the value of large swaths of their landholdings. Geo’s $400 million in dollar bonds due in 2022 have tumbled 69 cents to 12 cents on the dollar in the past year.
An index of Mexican homebuilder stocks tumbled 79 percent last year as Geo and Urbi Desarrollos Urbanos SA shares were suspended from trading in July for not reporting earnings. Desarrolladora Homex SAB, once Mexico’s biggest homebuilder, posted a second-quarter 2012 loss that was bigger than its combined profit in the prior six years, and has since been suspended from trading.
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