Mexican homebuilder Geo said on Monday that it entered bankruptcy protection after a judge accepted its filing for restructuring, Reuters reported. The company, which said last month that it gained the support of the majority of its creditors in a so-called pre-packaged bankruptcy plan, will seek to replace most of its about $1 billion in debt with stock. Read more.

Mexicana airlines, which suspended flights four years ago due to its heavy debt load, was declared bankrupt on Friday, paving the way to dismantle the iconic company, once one of Mexico's top two carriers, Reuters reported. About 30 investors sought for more than three years to rescue the airline, which has an estimated debt of $1 billion, but none proved to have the necessary funds.

Mexican homebuilder Geo , which has struggled with a heavy debt load and slumping home sales, has filed for bankruptcy after gaining the support of the majority of its creditors, Reuters reported. Geo, once Mexico's biggest homebuilder with sales of 55,485 homes in 2012, stopped making debt repayments last year. Creditors Banamex, HSBC, Banorte, Santander, Inbursa and BBVA Bancomer agreed to the bankruptcy plan, Geo said in a statement on Thursday. Foreign bond holders also supported the plan, Geo said, without specifying how many.

Home builder Corporación Geo SAB is preparing to file for bankruptcy protection in Mexico as early as Thursday to restructure a roughly $1.5 billion debt load that has brought its output to a near-standstill, people familiar with the company's plans said, The Wall Street Journal reported. Geo, hurt by problems in Mexico's low-income housing sector, is preparing to file a streamlined bankruptcy in a Mexican court. The company is in talks with a creditor group on a $200 million to $300 million loan to fund its restructuring, some of these people said.

Maxcom filed for pre-packaged Chapter 11 bankruptcy in a U.S. court, legal filings showed, as the Mexican telecoms firm pursues a recapitalization plan that would give full control to a investor group led by private equity firm Ventura Capital, Reuters reported. Small phone companies in Mexico have struggled to compete with billionaire businessman Carlos Slim's America Movil, which has about 70 percent of Mexican mobile connections and about 80 percent of the country's fixed lines.

Some local lenders to Mexican homebuilder Geo voted against signing an agreement the company recently reached with its major bank lenders to restructure its debt, according to a statement on Monday with Mexico's stock exchange, Reuters reported. The lenders hold local debt certificates that are backed by Geo assets. Geo, which is struggling with a heavy debt load and slowing home sales, said in June its main bank creditors had also agreed not to bring any new legal proceedings against the company and to suspend existing lawsuits.

Home buyers and investors are turning their backs on Mexico's low-income housing darlings, bringing a government-fueled boom that lasted more than a decade to a screeching halt. Scores of new homes in far-flung communities sit empty, while banks have canceled credit lines to some of the country's biggest housing companies, The Wall Street Journal reported. Homebuilders Urbi Desarrollos Urbanos SAB and Corporación Geo SAB, after luring more than $1 billion in foreign capital via overseas bond sales, skipped debt payments in April while they attempt to stave off bankruptcy.

Creditors of struggling Mexican homebuilder Homex could seek accelerated payment of the company's debt after Homex missed payments on derivative positions, according to a filing on Wednesday, Reuters reported. Failure to meet payments due on derivatives "arguably" constitutes an event of default on debt owed by Mexico's second-largest homebuilder, the company said in its delayed annual filing with the U.S. Securities and Exchange Commission. The company 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.

Mexican home builders and their creditors have been hiring U.S. bankruptcy lawyers and other advisers, as the companies struggle with mounting debt obligations, The Wall Street Journal reported. Two of the country's leading builders—Urbi Desarrollos Urbanos SAB and Corporación Geo SAB—missed debt payments in April and have reported dismal earnings. Urbi is considering a bankruptcy filing in Mexico as one option, some people familiar with the matter said. The two builders have tapped a combination of U.S. financial advisers and law firms, according to people familiar with the hirings.

Mexico's government proposed a sweeping overhaul of the banking sector Wednesday to make credit cheaper and more available, a move desperately needed in a country where bank loans represent less than 20 percent of GDP - one-tenth the level seen in the United States, the Associated Press reported. The plan would encourage banks to compete and lend more, create incentives for mid-size companies to list shares on the stock market, and modify bankruptcy laws to make it easier for lenders to seize debtors' assets.