23 February 2015 – Expansión
Deadline for negotiations / The real estate company has debts of €3,500 million and must reach an agreement with its creditors to avoid liquidation.
Martinsa Fadesa has until Thursday 26 February for its banks to accept the new creditors’ agreement that the real estate company submitted to the judge to deal with its €3,500 million debt and whereby avoid the liquidation of the company.
One of the discrepancies between Martinsa and its creditors is a mismatch of up to 70% in the valuations of its assets. For this reason, entities such as Popular, Caixabank, Abanca and Sareb will not be joining the agreement.
Two weeks ago, the Supreme Court rejected a claim for €1,500 million that the company had filed against the former managers of Fadesa and in doing so further compromised the feasibility of the real estate company controlled and chaired by Fernando Martín.
Moreover, the High Court ordered Martinsa to pay the legal costs (of that trial), which according to financial sources, amounted to €50 million, somewhat higher than the amount for which the company, which lacks liquidity, had make provisions.
On 30 December, Martinsa Fadesa submitted a request to the Commercial Court of La Coruña to reform the creditors agreement that in March 2011 enabled it to avoid the largest bankruptcy in Spanish corporate history. The real estate company has requested a modification to the agreement on the basis that it is impossible for it to meet the debt payment calendar established.
Original story: Expansión
Translation: Carmel Drake