Reyal Urbis continues under negotiation with several financial institutions to adapt its business plan to market circumstances and to obtain debt refinancing of about 4,800 million which it currently holds and to avoid the risk of insolvency proceedings.

The bankruptcy proceedings have mushroomed dramatically in the province during the last two years. Of the 20 insolvencies seen in 2007, Malaga has grown to 125 in 2009. The figure represents an increase of 525% in just two years, according to the scale of the data prepared by the firm PriceWaterhouseCoopers (PwC).