- Shares sink as much as 52 percent from February 2014 level
- Homebuilder said in July it concluded bankruptcy proceedings
Desarrolladora Homex SAB, which was once Mexico’s biggest homebuilder by revenue, tumbled as trading resumed after a 20-month suspension.
The shares sank 29 percent to 22.50 pesos in Mexico City, compared with the price on Feb. 27, 2014, when the Mexican stock exchange halted trading with the company after it delayed its earnings report. Homex had plunged as much as 52 percent earlier Friday.
The Mexican homebuilding crisis two years ago stemmed from President Enrique Pena Nieto’s shift in the nation’s subsidy policy for the industry, which dried up projects and drained cash at Homex, Corp. Geo SAB and Urbi Desarrollos Urbanos SAB. That left the three companies with land they couldn’t use, causing them to delay results, write down the value of their assets and default on foreign bonds.
Culiacan, Mexico-based Homex said in July that it concluded its bankruptcy proceedings and was “well-positioned to continue to restart its operations in accordance with its business plan.”