May 30, 2013 / 10:18 PM / 4 years ago

Mexico's debt-laden Homex hires J.P. Morgan for advice

MEXICO CITY, May 30 (Reuters) - Struggling Mexican homebuilder Homex has hired J.P. Morgan Securities to be its financial adviser as the company faces mounting debt problems, Homex said on Thursday in a statement to the Mexican stock exchange.

Homex, Mexico’s second-largest homebuilder, said the New York-based financial management firm will evaluate the company’s finances and sketch out alternatives aimed at turning the company around.

No further details were given.

Last week, Homex said in its delayed annual filing with the U.S. Securities and Exchange Commission that failure to meet payments due on derivatives “arguably” constitutes an event of default on debt owed by the company.

Homex at the end of December had a total of $900 million in three bonds due in 2015, 2019 and 2020, according to its fourth-quarter report.

Barclays’ Mexico unit and Credit Suisse are suing Homex in New York courts over missed payments on derivative positions.

Homex, like domestic rivals Geo and Urbi , has been struggling to make debt payments amid a slump in home sales.

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