Martinsa Fadesa says it is insolvent
MADRID (Thomson Financial) - Leading Spanish property group Martinsa-Fadesa said on Tuesday that it was declaring itself insolvent, having failed to raise a loan as part of a refinancing package.
The company said that a board meeting late on Monday had decided to make a request to be declared in breach of payments.
This would prevent its crisis from becoming ‘irreversible and having grave repercussions on creditors and the interests of all shareholders.’
Martinsa-Fadesa, which is quoted on the Madrid stock market, is a leading property group in Spain.
The group said that despite many attempts, it had been unable to obtain a loan of 150 million euros needed as the basis for refinancing.
On Friday, the group had requested an extra delay to raise the loan as part of a plan to refinance debt of 4.0 billion euros.
Martinsa-Fadesa has assets which were estimated to be worth 10.8 billion euros, and it employs 880 people.
Source : Thomson FinancialSpanish property group Martinsa-Fadesa says it is insolvent - Forbes.com