Reyal Urbis Owes €458 Mn to the Treasury, Regional & Local Authorities

3/12/2014 – Expansion

Reyal Urbis owes €457.88 million to the Tax Office, several regions and city halls. This is a mere 11.5% part of the €3.98 billion total liability of the property manager.

Reyal Urbis went bankrupt in 2013 with €2.5 billion in the red. At that time, it disposed of a €1.47 billion worth of real estate available to pay the debt off. The company chaired by Rafael Santamaria repeatedly stated it was working on an agreement with creditors to be presented ‘in the nearest future’.

During recession, the asset valuation carried out at the moment of bankruptcy got outdated as it had not taken into consideration any transactions pending closing, nor the asset depreciation over time. Specifically, sales offloaded its balance by €232.10 million and the value loss took away another €689.62 million.

Current debt of Reyal is mostly made up of ‘fees for issuing certificates by corresponding administrative bodies’.

In the first nine months of the ongoing year, the company lost net €483.6 million which adds 35% to its 2013 ‘red’. The loss was driven up by provisions and increased accrued liability caused by interests.

 

Original article: Expansión

Translation: AURA REE

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