Colonial Obtains €1 Billion Loan to Pay Lenders

10/04/2014 – Cinco Dias

Colonial has received a €1.040 million loan. The amount will allow it to pay half of the €2.086 million debt expiring this year. As the National Stock Exchange Commission (abbreviated to CNMV in Spain) explained, if the real estate company manages to enlarge its capital by the €1.266 million, and the chances are big, the property-linked debt of the company chaired by Juan José Brugera will shrink to €1.040 million. (…)

At the end of 2007 when the growing real estate bubble finally burst, the listed firm had a €9 billion indebtness (…) driven by activity of Luis Portillo, who spent almost €7 billion on launching an opa for Colonial and other investments. (…) A year later, the company was taken over by its lenders and they became its main shareholders.

(…) At the beginning of 2010, Colonial obtained a permission to prolong the debt expiration until 2014 on condition that it would create its own ´bad bank´, Asentia. When the payment deadline came in, so did investors. Juan Miguel Villar Mir, chairman of OHL, bought a little bit more than 20% of the listed firm and pledged a €300 million capital injection.

Together with the new capital enlargement, Colonial manages to keep SFL, a French firm where it holds a 53% stake. (…).

Presently. Colonial´s price on the stock market shows 1.9 euro a share, whereas SFL 37.65 euro a share.

 

 

Original article: Cinco Días (by Alberto Ortín Ramón)

Translation: AURA REE

33