Spain: Martinsa-Fades placed in insolvency
The property crisis has made its first victim in Spain kid, the developer Martinsa-Fades placed in suspension of payments, because they were unable to obtain a loan of 150 million euros. This is the 1st large real estate group to set them under the protection of the law since the reversal of the real estate market Spanish.
It is the largest developer in Spain is also a real estate group that works extensively abroad in both France and Great Britain, Portugal, Ireland and Morocco, and is especially the first victim of the very big reversal of the real estate market Spanish since last night, the group Martinsa-Fades is in suspension of payments, ie it was placed under the protection of the law, not disappear completely.
This is the most emblematic victim of this crisis which affects real estate Spain, Martinsa-Fades is the largest property developer in the country. The company suspends its activities with a debt of 5 billion euros, Martinsa-Fades explained that it stopped its activities officially to ensure the continuity of its activities, and face serious cash flow problems caused by the refusal of 'Official Credit Institute and various banks, to grant a loan of 150 million euros, a drop of water needed to finance the 4 billion euros of debt already renegotiated 2 months ago.
Martinsa-Fades, it is 173,000 homes, nearly 30 million square meters of ground, work up to more than 3 million. With the support of the administration, it should sell its assets to cope with debt is evidence that the housing bubble in Spain has imploded.
For the Housing Minister Beatriz Corredor is a very bad news. The president of the association of promoters Madrid, which does not mean that other real estate companies are obliged to put the key under the door, asked the government to take economic measures, immediate, urgent to save the sector. For investors, suspension of payments Martinsa-Fades, promises that the crisis has not finished reach Spain, the morning is trading at its lowest level in two years.
