8/01/2015 – Inmodiario
Following the transfer of 30.000 NH’s shares to Banco Santander, hotel chain Hesperia continues the talks with its creditors on restructuring nearly 480 million euro debt. By reducing its holding in NH from 17.6% share to 9.1%, the chain hopes the lenders would agree to renegotiate terms and conditions of its loans.
The strategy taken by the banks foresees sales of Hesperia’s establishments, however many of the properties turned out to be worth much less than the chain had expected. Santander, to which the chain owes 400 million euros, is disposed to forgive a 100 million amount, whereas Bankia failed to sell the Hesperia Tower (pictured) in Barcelona. If the plans of Hesperia took a real shape, the chain would decrease the number of its owned establishments to 14, with 40 hotels rented.
Almost half of the debt, 225 million euros, roots down to loans for purchase of the shares of NH in 2006 at a price of 9 euros each. Today, they are trading at €4. By 2013 the majority stakeholder of the Madrid-based chain with 20.07% at hand, Hesperia gave way to Chinese group HNA which grabbed a 24% holding after buying 4% from Amancio Ortega.
The agreement with creditors means selling an 8% share and three out of Hesperia’s 36 establishments.
Original story: Inmodiario (by the Staff)
Translation: AURA REE