Building negotiates with creditors the reversion to the State of the highways in bankruptcy – Investing.com Spain

MADRID (Reuters) – The Spanish Ministry of Promotion no longer see any alternative to the nationalization of the highways in bankruptcy to avoid closing to traffic of such infrastructures.

“.. the scenario that we face is getting to a reversal of these highways to the State. We are going to try and we are trying to negotiate with the financial institutions to see if it is possible to reach a mutual agreement that facilitates things,” said the minister of Development, Íñigo of the Serna, in an interview with Spanish television on Monday.

however, such a step would have a very strong burden for the public coffers, since the State would have to assume the accumulated debt of operating companies.

The employer’s construction Seopan calculated last year 5,500 million the patrimonial liability of the State on the highways in bankruptcy after the companies that built them to declare themselves in the contest in 2013 to not being able to recover the work performed by the toll for the strong decrease in traffic during the years of the crisis.

At the end of September, the Promotion already came to the rescue of two highways, radial streams — R3, and R5, are shared by Abertis (MK:), Sacyr (MC:), ACS (MC:) and Bankia (MK:) BKIA.MC — to appeal a court decision that would have forced the closure and liquidation of these highways.

the Promotion justified his intervention in September with the argument that it was a priority to keep up this infrastructure so that users are not affected.

Already in 2014, the Building had been raised by a rescue plan that passed through the integration of eight highways radial broken in a public company after you apply a off 50 percent on the debt in the hands of the banking and transform the rest of the liability on a bond to thirty years with a return of one percent.

however, that plan was rejected by the bank in its day and of the Serna acknowledged last month that the situation has become more complex because some of the financial institutions involved have been sold to investment funds part of the debt related to these facilities.

And these funds have already shown on several occasions that they are partners and it is very hard to accept discounts on debt backed by law.

The consumers association FACUA has criticized a possible nationalization, accusing the Executive to prioritise the safeguarding of the interests of banks and builders address the most basic needs of the majority of citizens.

“While the Executive keeps passing measures to avoid the cuts to the most vulnerable families, it does assume that would nationalize a debt dollar to the rescue, once more, to banks and construction companies, who are behind the management of the highways broken”, said the general secretariat of FACUA, Olga Ruiz, in a statement.

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