6 February 2017 – Expansión
The bankruptcy administrators of Martinsa Fadesa are getting ready to initiate successive notarial auctions of various real estate assets owned by the firm, as well as of several of the companies in the Group that have filed for liquidation.
These auctions will be carried out through the auction portal of the Official State Gazette (BOE), according to information provided by the current managers.
To this end, the administrators of the company will publish information sheets about the assets to be auctioned, with the aim of providing as much information as possible to users about the assets in question.
According to sources close to the process, the liquidation of Martinsa Fadesa may be completed in 2017 once the creditors have been returned “the present value” of the assets that they financed.
The jewels in Martinsa Fadesa’s crown included a group of buildings and plots of land in Paris, as well as assets located in Poland and Morocco.
The liquidation of the company, which was one of the largest real estate companies in the country during the boom years, involved the sale of assets at discounts of around 30% on their respective book values.
It also included the auctioning off of assets and the assignation of unsold assets to creditors so that they could choose whether to carry out “daciónes en pago” or sell the assets in return for cash.
The liquidation process, which was agreed in March 2015, was structured into three phases.
The first phase included the company’s most liquid assets, particularly those located in Madrid and Barcelona and along the coast.
During the second phase, the bankruptcy administrators put mortgaged assets on the market, whose revenues were used to repay those mortgages.
The third phase was orientated towards the repayment of debt lent by the ordinary creditors with assets not sold during the first phase. Once completed, the other assets were assigned to the creditors that so desired them through a notarial procedure.
The real estate company’s liquidation process began before the summer of 2015, after the ruling was issued by the judge in Mercantil Court number 1 in La Coruña.
And, even through on 11 March 2011, an agreement was approved for Martinsa to repay debt amounting to €7,200 million over a 10 year period, without any discounts, the company’s breaches and liquidity shortages forced it to file for liquidation.
Original story: Expansión
Translation: Carmel Drake