The shortfall of the real estate company Reyal reaches 1700 million Euros.
The real estate company Reyal Urbis, which presented a creditor´s meeting last February, has a patrimonial deficit of 1699,3 million Euros according to the report presented to the court by the insolvency administrator, which stresses that the main cause of insolvency of the company is the debt caused by the acquisition of the real estate company Urbis in 2006.
The report presented on the last 11th July by the insolvency administrator of Reyal Urbis, BDO Auditores and the Inland Revenue Service, shows a debit side of 4118,9 million Euros , mostly caused by the bankruptcy credits. In fact, these credits reach 4118,5 million Euros , while credits against the patrimony reach 380.000 Euros. On the other side, the value of the properties and rights reaches 2419,5 million Euros. The asset side is made of real estate assets, valued at 2325,4 million Euros, according to the valuation made by Jones Lang Lasalle on the 30th June 2013.
The report of the insolvency administration, made of representatives of the National Share Market Association and the Inland Revenue Service, also analyzes the most important operations of the company in the last three years, that include, among others, the refinancing carried out in 2010, the granting and further cancellation of the credit granted to a linked company and certain transmissions of assets such as the Hotel Diagonal or the real estate complex Castellana 200. After all this, the insolvency administration declares that the main reason for the insolvency of the company is the financial debt caused, mainly, by the acquisition in 2006 of the real estate company Reyal Urbis in view of the deterioration of the assets (mainly, the plots) caused by the situation of the Spanish economy and especially, of the real estate market.
As informed by the company to the National Share Market Association, Reyal Urbis continues working with the intention of reaching an agreement with its creditors and signing a proposal of agreement on the shortest term possible. The real estate company is therefore negotiating with the financial institutions that participate in the syndicated credit of the company.
The real estate company, that starred in the second biggest insolvency in Spain, closed the first semester of the year with a loss of 324,7 million Euros, starting from the 212 million Euros registered between January and June 2012. The business volume between January and June reached 32,8 million Euros, 35,6% less than the 50,8 million Euros invoiced during the same period in 2012, with a negative business result of 270,6 million Euros opposite to the 133,8 million Euros of losses registered until June 2012.
In the first semester of the year Reyal transferred 781 million Euros in debts to the bad bank, leaving its bank debt over 2700 million Euros.
At the end of the semester, the reasonable value of the land and finished properties of the group calculated based on the valuation made by Jones Lang Lasalle, reaches 2097,3 million Euros, 11,5% less than the 2371,4 million Euros registered on the 31st December 2012.