UPDATE 1-Judge approves debt restructuring plan for Mexico homebuilder Geo

lunes 15 de junio de 2015 20:46 GYT

(Updates with details about shares and capital raising from Geo news conference)

MONTERREY, Mexico, June 15 (Reuters) - A Mexican judge said on Monday he had approved the debt restructuring plan for Mexican homebuilder Geo, which entered into bankruptcy protection in April 2014.

The judge said bankruptcy protection for Geo and four of its units was over, according to a court statement. A ruling has not yet been issued for Geo's 11 other subsidiaries.

The company's shares have been suspended since 2013 because it was not reporting financial statements.

Geo hopes that within two months, its shares will start trading again on the stock market, a representative for the company said in a news conference on Monday evening.

The company will also call a meeting for shareholders to approve a capital raising in the next two months, the representative said.

In the capital raising, the investment funds Solida Banorte and Capital Inmobiliario will contribute up to 3.5 billion pesos ($226.74 million), which the company will use to revive its production.

Geo's shareholders approved the debt restructuring plan in May, which included raising 34.16 billion pesos ($2.21 billion) of capital by issuing 60.9 million new shares in exchange for liabilities.

Geo board President and Director Luis Orvananos said in a statement that the court decision would enable the company to recover its operational and financial viability. ($1 = 15.4363 Mexican pesos) (Reporting by Gabriela Lopez; Editing by Lisa Shumaker)