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 real estate company controlled and leaded by Rafael Santamaría said that he has already begun the process of a refinancing proposal, although "to this day he has not yet reached a final agreement about it."

"In any case, as he reported in the past, as soon as an agreement has been reached, it will be communicated immediately to the market” the company told to the National Financial Market Supervisor CNMV.



Reyal has around fifty financers such as Santander, Banesto, Caja Madrid, 'La Caixa' and Banco Popular.

Once the property group reaches an agreement with the big banks, it should seek accession to the rest of more than fifty financial lending institutions to obtain a global agreement on refinancing.

The deal revolves around the conditions of the initial refinancing plan that had been set up and proposed by the company.

This plan, designed together with Lazard and submitted to the banks last October, will provide a "comprehensive solution" to the situation of the company, bring its debt repayment schedule to the current market conditions and avoid an insolvency proceeding.

The main measures of this plan envisages the "temporary hold of all promotional activity with regard to real estate, it contains asset sales and a hold in paying dividends to shareholders and interests to associated lenders until 2013, in order to stabilize the activity of the company on the long term.

It also includes the commitment of banks to provide a funding bridge to ensure the implementation of business plan that would be paid by aforementioned asset sales plan. At this point, it also gives the possibility to swap debt for assets.

Source : Europa Press