Saturday, February 28, 2015

Spain: a developer along a spectacular failure – The

Spain: a developer along a spectacular failure – The

The Spanish developer Martinsa-Fadesa announced Friday, February 27 to convene a board of extraordinary administration on Monday. This is to study a possible bankruptcy would be one of the largest in Europe in recent years.

The company still has not reached an agreement with its creditors about d a restructuring of its debt. Liabilities would reach about 6.5 billion euros, according to the release.

The group could decide to stop spending by requiring the liquidation to the Commercial Court. Not having received any responses creditors, it has also taken no decision yet, told AFP a judicial source.

symbol of the real estate fever

This group, one of the industry leaders in Spain and symbol of the excesses that led to the explosion of the housing bubble in 2008, was declared insolvent in 2008. It was announced in March 2011 had reached an agreement to refinance its huge debt of about seven billion. The plan called for a return over eight years, from 2012.

However, according to press reports, citing financial sources, the company has failed to redress the balance and the judge could decide to liquidate, the main creditors refusing to go further. Faced with a liability of approximately € 6.5 billion, the company would have assets valued at 2.4 billion, the newspaper El Mundo .

Creditors losing patience

The creditors have until February 26 to decide, the statement of the group. But the main (Banco Popular, Abanca, Caixabank and Sareb, body to run the toxic assets of the banking sector), which hold 55% of the debt, refused the new plan, according to El Economista .

The bursting of the housing bubble plunged Spain into a deep recession from which it was released in 2014 with an explosion in the unemployment rate remains at record levels, 23.7 % of the active population.


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