Martinsa-Fadesa refinance deal sorted

[kenz]

According to Reuters Martinsa-Fadesa have sorted out a refinance deal securing the company for the future.

Happy Days.

The Moroccan lot who bought 50% seem to be doing very well. Whilst a lot of european residential construction companies are struggling their shares are up 25%.

Happy Happy days.

[Pepe Le Pew]

According to Reuters Martinsa-Fadesa have sorted out a refinance deal securing the company for the future.

Happy Days.

The Moroccan lot who bought 50% seem to be doing very well. Whilst a lot of european residential construction companies are struggling their shares are up 25%.

Happy Happy days.

Well... That didn't last long.

[riaz]

Press Release
Martinsa-Fadesa goes into voluntary
administration to guarantee continuity of the
company
This process only affects Martinsa-Fadesa, S.A., in Spain, and not the international
branches in the other countries that we are present, which will continue to operate as
normal
Madrid 16th July 2008.- Martinsa-Fadesa’s board of directors took the decision to go
into voluntary administration with the ultimate objective of guaranteeing continuity and
proceeding with the financial reorganisation of the company.
This decision has been taken in light of the financial difficulties we have been
experiencing as a result of not obtaining 150 million euros credit, which was included in
the business plan, and it was necessary to obtain liquidity and to continue developing
our projects as expected.
Martinsa-Fadesa’s board of directors have initiated these proceedings as soon as they
had certainty of this credit not being granted, to thus avoid any future damage to the
employees, creditors, clients and shareholders.
As such, the Chairman of Martinsa –Fadesa and the members of the board of directors
will continue to lead the company.
I
t is important to note that the measures we are adopting in this process will allow us to
solve the problems of liquidity and clear our debts in the shortest time possible.
Martinsa-Fadesa, under the above mentioned administrators supervision, will focus all
its efforts, from now, on activities such as generating income through selling assets, land
management and those which will allow the company to re-structure and adapt to
current market needs, which will enable the company to relaunch its projects as soon as
this process is over.
Martinsa- Fadesa is aware of the impact that a measure like this will have on its clients,
providers and small shareholders as well as the Spanish property sector in particular
and the Spanish economy in general. This is why the company, responsibly, assumes
the commitment of working intensely to overcome this situation as soon as possible and
asks for the support of financial institutions and understanding from clients, providers
and shareholders.
Note to the editor
Martinsa-Fadesa is one of the major European Real Estate companies specialised in
development of first and second real estate projects and with assets in hotel projects and
commercial centres linked to the residential activities. Martinsa-Fadesa has a portfolio of more
than 173,000 houses and owns land of approximately 27.5 million Sq.m of buildable land.
Martinsa-Fadesa is one the main European companies with international presence in Spain,
Portugal, France, Morocco, Mexico, Dominican Republic, Romania, Hungary, Poland, Bulgaria,
Czech Republic and Slovakia as well as commercial offices in the UK, Ireland and Germany
For more informartion
Arturo Pinedo / Luis González
LLORENTE & CUENCA
Tel. 00 34 91 5637722
apinedo@llorenteycuenca.com
lgonzalez@llorenteycuenca.com

[Pepe Le Pew]

Press Release
Martinsa-Fadesa goes into voluntary
administration to guarantee continuity of the
company
This process only affects Martinsa-Fadesa, S.A., in Spain, and not the international
branches in the other countries that we are present, which will continue to operate as
normal
Madrid 16th July 2008.- Martinsa-Fadesa’s board of directors took the decision to go
into voluntary administration with the ultimate objective of guaranteeing continuity and
proceeding with the financial reorganisation of the company.
This decision has been taken in light of the financial difficulties we have been
experiencing as a result of not obtaining 150 million euros credit, which was included in
the business plan, and it was necessary to obtain liquidity and to continue developing
our projects as expected.
Martinsa-Fadesa’s board of directors have initiated these proceedings as soon as they
had certainty of this credit not being granted, to thus avoid any future damage to the
employees, creditors, clients and shareholders.
As such, the Chairman of Martinsa –Fadesa and the members of the board of directors
will continue to lead the company.
I
t is important to note that the measures we are adopting in this process will allow us to
solve the problems of liquidity and clear our debts in the shortest time possible.
Martinsa-Fadesa, under the above mentioned administrators supervision, will focus all
its efforts, from now, on activities such as generating income through selling assets, land
management and those which will allow the company to re-structure and adapt to
current market needs, which will enable the company to relaunch its projects as soon as
this process is over.
Martinsa- Fadesa is aware of the impact that a measure like this will have on its clients,
providers and small shareholders as well as the Spanish property sector in particular
and the Spanish economy in general. This is why the company, responsibly, assumes
the commitment of working intensely to overcome this situation as soon as possible and
asks for the support of financial institutions and understanding from clients, providers
and shareholders.
Note to the editor
Martinsa-Fadesa is one of the major European Real Estate companies specialised in
development of first and second real estate projects and with assets in hotel projects and
commercial centres linked to the residential activities. Martinsa-Fadesa has a portfolio of more
than 173,000 houses and owns land of approximately 27.5 million Sq.m of buildable land.
Martinsa-Fadesa is one the main European companies with international presence in Spain,
Portugal, France, Morocco, Mexico, Dominican Republic, Romania, Hungary, Poland, Bulgaria,
Czech Republic and Slovakia as well as commercial offices in the UK, Ireland and Germany
For more informartion
Arturo Pinedo / Luis González
LLORENTE & CUENCA
Tel. 00 34 91 5637722
apinedo@llorenteycuenca.com
lgonzalez@llorenteycuenca.com

Martinsa-Fadesa global debt amount to € 7,000 MM if we take into consideration provider's outstanding debt plus sundry expenses. According to Spanish press report this morning, MF have taken down with them six of their Sapnish subsidiaries.

The valuation by CB Richard Ellis of MF total assets done last year have been considerably reduced in line with ongoing depreciative market values down due to the global economic recession.

I stand to be corrected here (I am used to infinitively much more impressive figures from old Fadesa) but overall worldwide sales this year 2008 for the MF Group is around € 17 MM which is peanuts to say the least. This from radio reports in Spain.

There is an even bigger problem and it is that clients holding sales contracts are not ready to complete on their properties in many cases due to the poor finishing and uncertainties surrounding the Group, although Spanish consumer assiociation have recommneded clients to carry on paying (and completing) as usual (a wise move to prevent total disaster)

There are projects such as Loreto in Mexico which is around 30 MM sq metres moulded in the style of Mediterrania-Saïdia that's stuck in a legal maze missing out on the slowed down but still active USA/Canada market.

So far there is no indication that group companies like Fadesa Maroc (participated 50% by Addoha) will go the same way as the matrix company but indications here in North Africa is that the agony is in the final stages. In all probability Fadesa Moroc will be bought on the cheap by Addoha who in turn have not the capability nor the knowhow to undertake such ambitious projects as MS or Marrakech.

Af far as staffing levels is concerned, during Jove's time staff numbers were about 1.600 / 1.800 (2006) gradually reduced as at yesterday to 880 (2208) and this prior to the announcement last week of the cutdown in 245 jobs including 70+ in the once majestic A Coruña Head Office. All this staff will have to be paid off according with (some would say) generous Spanish employment laws.

All in all it's not a Pretty sight under the North African sun. We are worried not on how long Fadesa Maroc will take to corporatively die, this is on the cards and we are already prepared to cry at the funeral, but how will Addoha react in digesting second helpings.

[Jason]

Your posts would have more credence if they were a) not all so negative
b)Not done in a language that makes little sense.

You imply you know a lot but impart little actual factual information , im thinking you have a issue with fadesa a la shaq style ! We all know that Fadesa in Spain is in a precarius situation - you imply it will effect people who have invested in this project. stop incinuating and explain how ?

[The_Pieman]

Pepe who......doom and gloom merchant, get some facts

[Pepe Le Pew]

Your posts would have more credence if they were a) not all so negative
b)Not done in a language that makes little sense.

You imply you know a lot but impart little actual factual information , im thinking you have a issue with fadesa a la shaq style ! We all know that Fadesa in Spain is in a precarius situation - you imply it will effect people who have invested in this project. stop incinuating and explain how ?

Hi Jason, thanks for your feedback.

I attempt to answer you points in draft order:

One) Negative Posts: My opinion is that my posts are as objective as my view of reality leads me to believe. Don't forget that I live here and the Fadesa Maroc scenario is daily breakfast for me.

Two) English is not my first language. I am always endevouring to improve. Apologies.

Three) I try to throw in as much factual information as I can. My previous post in this very thread perhaps throw some light in this direction. I am NOT an employee of Fadesa or any of it's subsidiary companies, I just live by ecomomic shadow of Fadesa Maroc an beleive myself qualified to comment.

I haven't a crystal ball to say whether clients, Uk or otherwise, are going to have trouble with Fadesa Maroc or it's overseas sales outlets but my experience in dealing with them would not persuade a personal bet. I can go into considerable technical, management and administrative detail but it's going to make me appear to be what you have suggested and I have no partiucular desire for that. I have never been the spoilparty type of guy.

Perhaps as this and other threads develop in due course, I will have the opportunity to explain more as facts and happenings are discovered and revealed graually. Watch this space.

Although you may think what I have said (so far) is uncomfortable, for the time being I will remain in humble default mode.

Again, thanks for you post. I appreciate it.

Pepe

[Pepe Le Pew]

Pepe who......doom and gloom merchant, get some facts

The Pieman from Wigan,

I am confused whether the team plays football or rugby (or both ) please enlighten me...

Anyhow, let's take it easy for the time being. We will walk hand in hand and discover the wonderful world of amateur dramatics.

Oh, its' Le Pew, Pepe..Le Pew.

Hasta luego Luca.

[The_Pieman]

Hey Pepe I'm starting to like you and my team certainly plays football as I support 100% Liverpool FC (I'm not into the funny shaped ball stuff0...who is your team?

If you are local to this development and I take it that you have more than just a neighbouring interest, you could post some up to date pictures?

PS your English is great Pepe le Pew

[Pepe Le Pew]

Hey Pepe I'm starting to like you and my team certainly plays football as I support 100% Liverpool FC (I'm not into the funny shaped ball stuff0...who is your team?

If you are local to this development and I take it that you have more than just a neighbouring interest, you could post some up to date pictures?

PS your English is great Pepe le Pew

Hiya Pieman,

Luv to see Torres & Villa in your front line but I don't think Valencia is going to let Dave go. Anyhow, watch Fernando net 30 next season, he feels good in England.

My lot are Sevilla CF, this is a type of Bank with a football team as opposed to Bank employees playing football at weekends. What I mean to say is that we buy cheap (like Addoha ) and sell on for a few bob (Juande Ramos, Sergio Ramos, Danny Alves, Keita, Julio Batista, Poulsen, José Antonio Reyes et al). We had a couple of good years (ask the Boro ) but we'll be lucky if we play in the CL next season. Watch Freddy Kanoute and Luis Fabiano this year cos a lot of Premiership teams are going to go for it, they've got the cash, innit, like Fadesa

Suffice to say that I make my livelywood out of the success of Moroccan Tourism, so you can more or less think I'm frothing white foam in the mouth with the Fadesa circus, my beloved compatriots.

Photos: OK... I'm not going back to Saïdia next weeK on the recommendation of my pychologist , joke, but don't worry I'll face my fears and post some photos here for you lot.

Thanks for the compliment re my English, I rather the compliment came from a fit lady what can you do... They say sell in the buyers language and buy in your own. I'm neither here or there.

Inshallah wa ma salama, habbibi.

Pepe