Geo Faces Restructuring

Corporacion Geo is planning a debt restructuring, it says, faced with a heavy debt load and a difficult outlook for the Mexican homebuilding sector. It plans “a financial and operating analysis, with the Principal objective of generating efficiencies and reviewing alternatives to restructure its financial debt.” There were no specific details as to size or timing available. Fians Capital has been hired to advise. Geo had MXP14.80bn ($1.23bn) in total debt as of year-end, according to Moody’s data. S&P has lowered Geo to CCC+ from BB minus, and is keeping the builder on negative watch. Peer Urbi is also said to be looking at restructuring options.