Martinsa Fadesa Offers Banks 70% Of The Company

23/12/2014 – Cinco Días

Martinsa Fadesa has offered its creditor banks to swap much of the €3.5-billion debt, currently guaranteed by stock of the real estate company; thus, financial institutions would come to control a 70% stake in the company.

The remaining 30% of the realtor’s equity would remain in the hands of its president and current top stockholder, Fernando Martín, and his partner, Antonio Martín, according to sources from the company cited by Europa Press.

The debt-equity swap would be a major proposal of the plan that Martinsa Fadesa has revealed this Monday to its fourteen bank creditors in order to obtain debt refinancing before December 31st and avoid liquidation.

The real estate firm, which overcame the biggest insolvency proceeding in history back in 2011, offers its lenders to swap another 34% of the debt with a transfer of real estate assets.

According to a source of Europe Press from Martinsa, the banks have required further details on some of the terms of the proposal. The realtor expects to provide those details tomorrow, on Tuesday, in order to continue negotiating in its quest for an agreement.

Original article: Cinco Días

Translation: Aura REE

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