Three-Quarters of San Jose’s Creditors Say ‘Yes’ to Refinancing

11/11/2014 – Expansion

Real estate and builder company San Jose controlled by the Rey family is at the brink of reaching the agreement with its lenders on refinancing its debt obligation amounting to €1.63 billion.

San Jose has got the green light for liabilities restructuring from 75% of its creditors, the company said in a statement provided to the National Stock Exchange Commission (or the CNMV).

As the Expansion newspaper reported on 19th November, the banks, led by Popular, Abanca and BBVA, agreed on swapping the debt for majority stake in the property manager. The Reys would preserve the control over activity of the builder.

Like its competitors from the market, the San Jose group has suffered a lot because of the slump in civil engineering and residential segments in Spain, losing €36.3 million from January to September 2014, but trimming the red by 36% if compared to the €56.8 million loss from the same period of time in 2013. Currently, its shares on the stock sell at 0.78 euros each, giving a total capitalization of €51 million.

 

Original article: Expansión

Translation: AURA REE

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