Martinsa Fadesa Tackles 37% of Its Debt
17/11/2014 – El Mundo
During the first nine months of the year, Martinsa-Fadesa lost a net amount of €201.62 million and therefore reduced its 2013 ‘red’ by 37.5%.
The firm led by Fernando Martin (pictured) said the improvement was triggered by better dwelling and real estate asset sales, as well as less financial expenditures allowing it to compensate for a €105 million provision for impairment losses.
Martinsa’s revenues increased by 34.6% from January throughout September 2014 and posted €95.15 million in total. They proceeded from delivery of 1.296 dwellings, 430 units in Spain.
Moreover, during the discussed period of time, the company sold a 40% stake it held in an office building in Paris for €353 million.
At the end of September, Martinsa Fadesa showed a capital hole of nearly €4.49 billion, just like a year before.
However, the real estate firm reminds it is not bound to go bankrupt thanks to the latest law passed by the Government, stating that property managing companies whose difficult situation derives from their asset depreciation are exempt from forced insolvency proceedings.
Martinsa Fadesa is currently in talks with its lenders on restructuring its €3.9 billion debt liability, after it was unable to pay the amount off on time due in December 2013. The next deadline was set at December 2014.
Original article: El Mundo
Translation: AURA REE