Martinsa’s One Foot In Liquidation

25/11/2014 – Cinco Dias

Property management company Martinsa Fadesa, the face of the real estate bubble which fell into insolvency in summer 2008, is closer and closer to being liquidated, once its new debt restructuring plan was rejected by creditors.

In March 2011, court extended a €7.2 billion payment obligation of Martinsa Fadesa for further 10-years. Officially, it was no bankrupt anymore. At the same time, the real estate firm promised to pay-off at least €3.2 billion owed to twelve entities but it failed to keep the word. Since last year, the 1% of that quote awaits amortization, i.e. €32 million.

Apart from the aforementioned amount, Martinsa Fadesa was supposed to face a 12.5% part of its total debt, €384 million, and sources from the sector hum it will be unable to repay that under no circumstances.

They also suggest the company could dodge the miserable end if it amortized the €32 million. However, it will probably be not able to do that either.

In the last effort to stay afloat, Martinsa went on talks with creditors on covenant change and asset give-in (mostly land), in exchange for debt write-off but the lenders said ‘no’ as it was incompatible with current legistlation.

Few days ago, taking advantage of amendments in insolvency regulations, the firm pursued its new plan called ‘Project Aurora 2’ which would allow it to trim the high indebtness by around €450 million. What is most surprising, the property company wants to keep most of its assets which are jointly valued at €1.4 billion.

In opinion of Martinsa’s main creditors, the proposal is ‘unacceptable’ and ‘inexplicable’ as it suggests the banks shall write-off 80% of the owed amount, take away assets worth a mere 19.5% part of the total, and assume that they will receive the remaining 0.5% within next eight or nine months.

Given such a development, sources close to the entities (i.e. CaixaBank, Banco Popular, Abanca -former Novagalicia-, Morgan Stanley, Royal Bank of Scotland, Sabadell, Unicaja, Liberbank, BBVA, CEISS -Caja España-Duero-, Kutxabank, Bankia and Sareb) say liquidation of Martinsa Fadesa may be an option, unless it presents a better offer.

 

Original article: Cinco Días

Translation: AURA REE

Arturo Hoteles Goes Bankrupt

20/11/2014 – Cinco Dias

The Mercantile Court nº 1 in Madrid has run an insolvency lawsuit for Arturo Hoteles, a hotel chain belonging to CEIM (Madrid’s Entrepreneur Confederation) chaired by Arturo Fernandez. The company has been pulled into bankruptcy by the entire Grupo Arturo Cantoblanco.

Data Legal lawyers office became the official receiver, having experience in managing such large bankruptcy proceedings like the ones of Seop or Detinsa, owing more than €300 million each.

According to the firm’s web site, Arturo Hoteles manages three establishments: four-star Arturo Norte in Madrid located nearby the Barajas airport (pictured on the right), the Hotel Miranda & Suizo in San Lorenzo del Escorial and the Hotel Monasterio de Rueda in Aragon.

At the end of 2013, the Cantoblanco announced sale of 51% of Arturo Hoteles to Real Investment Holding. However, as the head of the latter said the transfer did not materialized as the company of Arturo Fernandez provided it with ‘inaccurate accounting and financial balance picture, concealing the insolvent situation of the group’.

 

Original article: Cinco Días (by Alberto Ortín Ramón)

Translation: AURA REE

In Tempo Apartment Buyers to Lose Out on Bankruptcy of Olga Urbana

14/11/2014 – Cinco Dias

Last week, Spain’s bad bank Sareb informed it had filled a creditor’s petiton for bankruptcy aimed at Olga Urbana, the developer of one of the highest residential skyscrapers in Europe, the In Tempo, located in Benidorm. As it explained, the measure has been taken  to ‘protect interests of its own, of the possible buyers, providers and other potential creditors’. The judge agreed to run the trial as ‘the control of the Official Receiver will allow to ensure the best warrants for the project valuation and protection of various impacted parties’.

However, lawyers of Olga Urbana’s creditors and purchasers of dwellings inside the tower do not quite see eye to eye with the claimant’s opinion. In fact, they are pretty pessimistic about it.

‘In case of bankruptcy, my clients will be the last to receive any compensation’, says a lawyer of private buyers of one of the flats. This client and many more have been struggling to get back the paid-in amounts, allegedly guaranteed, but when they tried to do so they discovered there were no warrants. ‘We suppose the most normal process would include a bid of an investor for the In Tempo building, at a low price, and the new owner will negotiate a deduction with the home buyers’, the lawyer says.

‘The lawsuit will bring no benefit for Sareb because its priviledged position will remain blocked in the first year of the proceedings, so this step of the bad bank is incomprehensible’, points out Jose Martinez from the Gesico office which foreclosed two apartments in the skyscraper. ‘Now the creditors will have to cover all fees and expenses linked to the lawsuit. Probably, they are not earning a penny now and the sale of the assets is no small task’, he adds.

Sareb insists that only legal intervention may guarantee protection for the creditors.

Started in 2006, 200-meter tall In Tempo is practically completed today. Applying to bankrupt Olga Urbana derived from a guilty qualification (Spanish: concurso culpable) as the company was shown insolvent and had not provided balance reporting since 2009. This sort of proceedings may lead to seizure of the firm’s properties and to a future company administration ban for its directors.

 

Original article: Cinco Dias (by Alberto Ortín Ramón)

Translation: AURA REE

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

Sareb Applies to Bankrupt Olga Urbana, Developer of In Tempo Building, Benidorm

7/11/2014 – Expansion

Sareb, Spains bad bank, has presented a bankruptcy petition to the Mercantile Court Nº 1 of Alicante for developer Olga Urbana, S.L., the builder of the iconic In Tempo building in Benidorm.

Sources from Sareb told ‘the decision has been made due to lack of solvency the company demonstrates in the magnitude of unpaid amounts and inability to face the construction of the In Tempo tower [pictured on the right] with its own equity’.

‘Thanks to the Order, the firm’s viability, equity state and above all, the project, will get under judicial control’, states Sareb. ‘The proces was run to protect our interests, the interests of the possible buyers, providers or other possible creditors’.

The bad bank is the main creditor of Olga Urbana. ‘Once the provisional trustee takes over the assets, the project valuation and protection will be secured’, Sareb assures.

‘On December 31st 2012, the bad bank acquired the loan granted by NCG Banco to Olga Urbana for construction of the In Tempo building’, we read in a press release. According to Sareb, ‘at that moment the building was 93% finished and the date for the official end was set at between March and April 2013. (…) The debtor owes €100 million to the bad bank’.

 

Original article: Expansión (after EFE)

Translation: AURA REE

Reyal Urbis Loses €483 Mn YTD

3/11/2014 – Expansion

The real estate company belonging to Rafael Santamaria lost €483 million and gained 33% more, €79 million, from January to September.

In the insolvency process since February 2013, the group struggles to beat a €3.39 billion amount of total debt, as well as the owners equity reaching deep in the red (€2.89 billion).

Original article: Expansión 

Translation: AURA REE

Aifos Refused Covenant & Sentenced to Liquidation

3/11/2014 – Cinco Días

Once reigning in Andalusia, Aifos has not come to an agreement with lenders and as a result the bankruptcy process it has been undergoing since 2009 will end up with liquidation.

According to the group’s president Jesus Ruiz-Casado, the sentence has arrived too soon as reports and business valuation had not been finished yet. Among the creditors one may find Aifos’s homes owners, banks, Treasury and Sareb.

The businessman tried to pull his company out of insolvency with help of Emilio Noseda, who was ready to take Aifos over and inject necessary equity if the lenders agreed for another covenant.

Founded in 1994, the firm went bankrupt with €1 billion in liabilities. It built 18.000 houses in total, employed 2.600 workers, had 53 branches in four countries and a 4.700 network of real estate agencies all over Europe. In 2005, Aifos was at the brink of going public but an affair with its executives in the main role shattered the plans. Three years later, the company joined other insolvent property managers like Tremon, Sacresa, Nozar or Llanera.

 

Original article: Cinco Días (by Alberto Ortín Ramón)

Translation: AURA REE

Husa Group Shown at Least €153.3 Mn in the Red

30/10/2014 – Cinco Dias

Six companies of the Husa group that are currently undergoing the brankruptcy process jointly show a €153.3 million financial deficit, states a report by the insolvency authorities of Barcelona.

The remainder proceeds from €68.5 million in assets and €221.8 million in accrued liabilities of the firms. Another €50 million shall be taken into consideration, deriving from pending lawsuits and claims. If all added up, the total debt of the group could amount to €202.6 million.

The group chaired by Joan Gaspart (pictured) shows a €221.8 million in the red, 40.2% owed to the Treasury and the Social Security, 26.4% to principal lenders: CaixaBank and Banco Sabadell, and the remaining 31.3% to general creditors.

Both the judge and other official receivers believe the debt may increase as more companies from the group are very likely to voluntarily present bankruptcy petitions.

Hosteleria Unida fell into insolvency in February this year and as a result several hotels were sold. Among them, the iconic Palace de Barcelona. Moreover, 300 employees lost their jobs.

The firm accrues the biggest deficit, €115.7 million, as it owns a €34.7 million worth of assets – initially declared to be worth €145 million – and €150.4 million in liabilities.

The other companies from the group that face tough financial situation are: CCIB Catering with €2.2 million in the red, Cadena Menta with €6.3 million, Banquetes Reunidos with €17.6 million, Hosteleria Unida Dos with €2.8 million and Jardines de Albia with €8.7 million. The penultimate one operates on normal basis, holding the Imperial Tarraco hotel.

The court foresees closing the Bankruptcy Order stage before the Christmas break and opening the creditors’ meeting just after that.

 

Original article: Cinco Días

Translation: AURA REE

Renta Corporación Leaves the Loss Behind & Gains €29.8 Mn

23/10/2014 – Expansion

Renta Corporacion has registered a net profit of €29.8 million in the first nine months of 2014. During the same period of time in 2013, the company lost €5.6 million. The upturn is mostly due to its building sales from which it earned more than €125 million in total.

The company admits the recent activation of the sector allowed it to seal important deals, expected to close in the last quarter of the year.

Renta Corporacion crawled out from the insolvency process this July and it still has got a €55.4 million debt to pay off.

 

Original article: Expansión

Translation: AURA REE

Creditor Applies to Bankrupt Urvasco

20/10/2014 – Expansion

A lender has presented a bankruptcy petition to the Court of Vitoria for Grupo Urvasco, the main shareholder and manager of hotel chain Silken (the Al-Andalus hotel in Seville pictured).

The group has been dodging insolvency process for years and its current indebtness posts €600 million.

 

Original article: Expansion

Translation: AURA REE