I've copied the article below for those that couldn't find it. This is only my personal opinion of what this might mean and I may be entirely incorrect but - Typically whan a company swaps it's debt it means it is having trouble meeting its' interest repayments. This could be a sign that Polaris is under some degree of financial distress and is looking to free itself by basically handing over it's assets to the banks - the alternative would be for it to default on its repayments.
What does it mean for Condado ? Who knows but if the bank takes ownership of the asset (Condado, La Torre, Mar Menor etc) I would expect that would be a short term measure until it can offload it to another (hopefully solvent) developer. As I say who knows but it is a sign of the very uncertain times we are in - lets hope it is indeed a good thing and the development of Condado will continue as planned.
Typically Spanish - Spain News : Costa Cálida
Polaris World in talks with its creditors
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By h.b. - Jun 8, 2009 - 8:08 AM
Polaris World advertising
The Murcia newspaper,
La Verdad, reports today that the Polaris World property developer based in the region, is in talks to reduce its debt by handing over some of its property assets to the banks it is in debt to.
The company is reported to have taken on loans totalling nearly 900 million € over recent years and is reported to now be offering both land and housing to the banks.
The newspaper reports that if the talks are successful the company could clear its debt to leave it in a good position for the future. The main banks concerned are Bancaja, CAM, Banco Popular, Banco de Valencia and Cajamurcia.
Given the collapse in the British market for homes in the region, Polaris World has recently concentrated its promotions on the Spanish market.