6 June 2016 – Expansión
The liquidation of Martinsa Fadesa may be finalised in 2017, once the creditors have been returned the “present value” of the assets they financed, according to sources close to the process.
The current bankruptcy administrators of the company have put Martinsa’s assets, worth €225 million, up for sale and have completed sales amounting to €25 million. The jewels in the real estate company’s crown include a group of buildings and plots of land in Paris, as well as assets located in Poland and Morocco.
Discounts of 30%
The liquidation of the company, which was one of the country’s largest companies during the years of the real estate bubble, includes the sale of assets with discounts on their book values of around 30%. It also includes the auctioning off of assets and the allocation of those unsold assets to creditors so that they may choose whether to carry out the “dación en pago” of the debt or approve the sale of the asset by the bankruptcy administrator in exchange for cash.
According to the sources, although the assets are the same ones that were financed at the time of the takeover bid, the decline in the real estate market in Spain has affected their initial values.
Nevertheless, they consider that the creditors may recover their investments over a time horizon that mirrors the recovery of the Spanish economy and of the real estate sector. In fact, they say that some assets have been sold above their book values.
Original story: Expansión
Translation: Carmel Drake