Renta Gains Lenders Support to Get Out of Bankruptcy

16/06/2014 – Expansion

Renta Corporación could crawl out of insolvency within the next weeks. Banks approved the arrangement proposal and as a consequence the Mercantile Court of Barcelona will lift the suspension of payments procedure in 3-6 weeks.

After a year and 3 months of being declared bankrupt bearing a €185 million indebtness, Renta obtained a 100% support from the banks participating in the sydicated loan (i.e. Sareb, Banco Popular, ING Real Estate Finance, Deutsche Bank, CaixaBank and Caixa Geral) allowing cancellation of €98 million in exchange for mortgage-backed assets.

The rest of the debt will be paid-off through two ways: around €35 million will be swapped for Renta Corporación´s shares at price of 5.9 €/share with max. 15% dilution. For the remaining €15 million, forgiveness reaches over 10% with an 8-year repayment term. The company was suspended in the stock exchange in March 2013 when shares sold for €0.57.

 

Original article: Expansión (by Marisa Anglés)

Translation: AURA REE

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