Monday, March 2, 2015

Spanish Real Estate Martinsa-Fadensa goes bankrupt – The Economist

Spanish Real Estate Martinsa-Fadensa goes bankrupt – The Economist

The Spanish real estate Martinsa-Fadensa announced its bankruptcy, where the bursting of the housing bubble in 2008 dragged the whole economy.

Spanish real estate Martinsa-Fadesa announced Monday its bankruptcy, the largest in the industry so far in the country, where the bursting of the housing bubble in 2008 dragged the whole economy.

“The Board of Directors celebrated on this day, has agreed to request the opening of liquidation, “said a statement by night company, which has an estimated population of almost 7,000 million euros (7,800 million) debt.

According to the Spanish company, the plan submitted was rejected by 75% of the creditors of the estate, which had until February 26 to decide.

According to the accounting report 2014 released Friday, the group with presence in Spain, France, Romania, Hungary, Poland and also in Mexico and Morocco, had a debt of 7,000 million euros, valued at 2,400 million euros assets.

Your creditors, Banco Popular, Abanca, CaixaBank and SAREB, the bank grouping assets restructuring, known as “bad bank”, felt that the plan was not viable, said the economic daily Cinco Dias.

However, these entities should not be affected, “as they have had to make ample provision and were created several organs asset management,” said Paul Kindelán of consultancy DTZ.

The group, whose record of crises the summer of 2008 was the largest in US history with a colossal debt of 7,200 million euros, was saved in extremis in March 2011 for a refinancing plan.

He foresaw then repayment of debt in eight years, from 2012, but. ‘Echo of another era’

could not succeed

The group, led by Fernando Martín, never really recovered from the purchase of Fadesa for over 4,000 million euros in 2007, before the outbreak of the housing bubble.

The leader of Fadesa, Manuel Jove, whose personal fortune estimated at 2,000 million euros Forbes magazine, sold a 55% stake in Fadesa group of 3,000 million euros. He was accused of overestimating the company but lost Martinsa process.

The bursting of the housing bubble Spain plunged into a deep recession that only managed to rebound in 2013, although unemployment is around 23.7% .

In addition to Martinsa-Fadesa, several Spanish real estate groups went into bankruptcy in recent years. The developer Reyal Urbis, with a debt of more than 3,600 million euros, also presented a plan to avoid liquidation, while ReyalHabitat, with about 2,800 million and Sacresa, with 1,800 million euros, are also in progress.

But this bankruptcy is probably the last of such magnitude in a sector that in 2014 showed signs of recovery with new profiles of investors who do not come from the stone but of finances, as Chinese tycoon Wang Jianlin, noted The World on Sunday.

Home sales have increased in Spain in 2014, for the first time since 2010, 2.2% in a year according to the National Statistics Institute.

For Paul Kindelán, the bankruptcy of Martinsa-Fadesa “does not represent the current market situation, but is rather an echo of another time.”

For him, “the market has changed Trend like the rest of the economy, with the arrival of liquidities. “

However,” the situation remains fragile and uneven across regions and sectors, “he said.

April

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