Here is the press release... this is not bad news... just ALGOS playing.
HOMEX FIRST CONCRETE BRIDGE CREDIT INDUSTRY UNDER THE WARRANTY OF SHF A housing construction.
Culiacan, Mexico, April 11, 2013 - Desarrolladora Homex, SAB de CV (Homex or the Company) [NYSE: HXM, BMV: Homex], has completed the first ABC Capital bridge loan guarantee program under the Federal Mortgage Society (SHF). The proceeds of this loan will be used for working capital for vertical housing construction, which the Company may take advantage of the subsidy program CONAVI available for this type of housing. At December 31, 2012, 55 percent of housing production Homex was vertical and the Company estimates that this percentage may increase to 60 percent in late 2013.
On March 6, 2013, filed SHF SHF Guarantee Program to housing construction, as the first step of a comprehensive public policy of the Federal Government, in housing, low institutional coordination of the Ministry of Development Agrarian and Urban Planning (SEDATU). Under the program, the SHF cover commercial banks and financial intermediaries regulated to 30% of first loss credit portfolio for the construction of housing, boosting funding in the sector.
"We are delighted to be the first company in the industry to achieve the first bridge loan guarantee under the SHF in conjunction with ABC Capital and, if participants in the support that the Mexican federal government is giving the housing industry to help more Mexican families access to a home of their own and of quality. " Said Gerardo de Nicolas, Chief Executive Officer of Homex.
Bro, this is horrible news. It shows they can't get financing without government assistance. The Bonds are showing weakness again. The equity is worth $0 if the bonds don't pay par. Right now, the bonds are trading at $87 which implies the stock is worthless.