Billionaire Sam Zell is in talks with Desarrolladora Homex SAB, the Mexican homebuilder that defaulted on its debt last year, for a loan of as much as 1.8 billion pesos ($137 million).
Homex would use the money from Zell Credit Opportunities Fund to build as many as 8,000 homes, the homebuilder said in a statement to the Mexican stock exchange. The financing would also include 300 million pesos for general corporate purposes, the company said.
Homex, once Mexico’s largest homebuilder, posted a second-quarter 2013 loss that was more than its combined profit in the prior six years. The shares were suspended from trading after it failed to file a quarterly financial report before the stock exchange’s deadline in February. The Culiacan, Mexico-based company and two other homebuilders defaulted on bonds last year as their cash dwindled following a government shift in the allocation of housing subsidies.
Terry Holt, a spokeswoman with Zell Credit Opportunities Fund in Chicago, declined to comment.