Restated Consolidated Financial Statements
Years ended December 31, 2010, 2009 and 2008
Desarrolladora Homex, S.A.B. de C.V. and Subsidiaries
Notes to restated consolidated financial statements
for the years ended December 31, 2010 and 2009
(Figures in thousands of Mexican pesos (Ps.), except as otherwise indicated)
11. Debt

a)
As of December 31, 2010 and 2009, the outstanding balances of short-term indebtedness with financial institutions consist of the following:


b) As of December 31, 2010 and 2009, the outstanding balances of long-term debt with financial institutions consist of the following:




Covenants
Loan covenants require the Company and its guarantor subsidiaries to meet certain obligations. These covenants cover changes in ownership control, restrictions on incurring additional debt that does not meet certain requirements established in the loan contracts, restrictions on the sale of assets and the sale of capital stock in subsidiaries, unless they meet certain requirements, and restricted payments where dividends cannot be paid or capital reimbursed to equity unless they are made between the guarantor subsidiaries.

Most significant financial covenants, contained within loan agreements, require the Company to maintain:

A total of equity of at least Ps. 10,000,000;
A ratio of interest coverage (EBITDA/net financing expense) over 3.0 times; and
A ratio of leverage (liabilities with cost/EBITDA) of less than 3.25 to 1.0;
A ratio of leverage (liabilities/equity) of less than 2.50 to 1.0;
A ratio of leverage (liabilities with cost/equity) of less than 1.50 to 1.0;

There are also restrictions applicable to additional debt based on EBITD A levels. In the event the Company does not comply with any of the above provisions, it will be limited in its ability to pay dividends to its stockholders.
As of December 31, 2010 and 2009, the Company was in compliance with the financial covenants contained within its debt agreements.

Debt maturities
As of December 31, 2010, long-term debt matures as follows:



The TIIE rates published in the Federal Official Gazette as of December 31, 2010 and 2009 were 4.8750% and 4.9150%, respectively. The exchange rate used to convert debt denominated in US Dollars and Brazilian Reals for the year ended December 31, 2010 were 12.3817 Mexican pesos and 7.4366 Mexican pesos, respectively. The exchange rate used to convert debt denominated in US Dollars and Brazilian Reals for the year ended December 31, 2009 were 13.0437 Mexican pesos and 7.5183 Mexican pesos, respectively.