Reyal Urbis expects refinancing accord shortly
Wednesday, September 24, 2008 @ 11:14 AM
Spanish real estate company Reyal Urbis SA is in talks with creditors over refinancing its multi-billion euros debt and expects to sign a final deal in the next few days, it said on Tuesday.
"All the financial entities involved need to agree and the corresponding refinancing contract needs to be signed," the company said in a statement to the Spanish stock exchange regulator.
The announcement followed a report in Spanish daily Cinco Dias, citing sources close to the deal.
Like other Spanish real estate companies, Reyal Urbis is facing increasing pressure to meet growing debt payments as its revenue shrinks and asset values drop in Spain's property crisis.
One of Spain's largest developers, formed through the merger of Urbis and Reyal in 2007, Reyal Urbis said it had net debt of 5.5 billion euros ($8.1 billion) when it reported first-half results last month.
Cinco Dias said Reyal Urbis is holding talks on spreading payment of a credit line of up to 3 billion euros.
Spanish newspapers have said the two Spanish banks leading the talks, Banesto and Santander, were in favour of the debt refinancing plan.
Some 80 percent of Reyal Urbis's sales come from the sale of residential properties and land -- a market that has slowed to a virtual standstill in some areas of the country after a 10-year property boom hit the buffers at the end of last year. (Reporting by Sarah Morris, Tracy Rucinski and Judy MacInnes; Editing by David Holmes)
Source: Reuters