Dear Richard,
Since the Company exited its Concurso Mercantil procedure in 2015, Homex has done important
corporate and structural changes to build a new story and a NEW Homex.
Homex has a new group of institutional investors and a new Board of Directors, which members in
its majority are independent and were named by the new shareholders of the Company.
Importantly, Homex has strengthened its internal control mechanisms to improve its corporate
governance practices and risk factors. As a result, Homex has (i) a zero tolerance policy and clear
definition of accounting and operating policies and rules, and an effective surveillance of its full
compliance, (ii) design and implementation of a new internal control system, as well as a
reorganization of the internal auditing area ; (iii) preparation of periodic financial and operating
reports which are presented to the Board of Directors; and (iv) implementation, training and
application of a new Code of Ethics to all of Homex’s employees and Board of Directors.
Additionally in May 2017 the Board of Directors also named a new CEO with experience in the
financial and construction sector in Mexico. José Alberto Baños, joined the Company with the firm
commitment of contributing to the construction of a New Homex, focused on being a transparent,
profitable and successful company to generate value to Homex’s group of interests and most
importantly to the Company’s clients.
Recently on September 2017, the Company completed a successful capitalization plan, through
which the Company received a capital injection of approximately Ps.819 million and re-structured
approximately Ps.3,400 million in liabilities through its capitalization. In the re-structure of liabilities,
the Company obtained the support of important financial institutions such as: Lagatus, Banorte,
Inbursa, and Iron Capital Holdings. As well, the Company received the support of national and
foreign investors whom injected new resources which will be used for the execution of the New
Business Plan of the Company.