Six Years After Declaring Insolvency Martinsa Still Owes €6.7 Bn

7/05/2014 – Cinco Dias

According to the CNMV (Spain´s Stock Market Commission), on December 31st 2013 Martinsa-Fadesa´s debt projected €6.694 million.

The real estate firm applied for insolvency process in 2008, when its indebtness oscilated around €7 billion. In 2011, it obtained enough aid to leave the process. About €4 billion out of the amount Martinsa owes to financial institutions.

The debt of the group led by Fernando Martin corresponds to outstanding debt obligations with a special privilage of €128.3 million, mortgages with subrogation option of €210.5 million and about €1.887 million in non-current reorganization debt. Its property is also linked to assets transferred to Sareb by banks (€214.2 million).

Moreover, Martinsa-Fadesa is ought to pay loan interests earned of €20.5 million and soon-to-expire ordinary reorganization debt with non-financial lendors of €164.4 million.

In 2013, the real estate company lost €710.6 million. Martinsa is negotiating debt restructuring and although it preserved liquidity, it could not manage the non-privilaged default of €52 million.

Deloitte, the firm´s auditor, said that Martinsa´s existence “portrays significant uncertainty about its capacity of further operating as a company”.



Original article: Cinco Días (by Alberto Ortín Ramón)

Translation: AURA REE