BYE BYE FADESA
Posted: Mon Jul 14, 2008 4:36 pm
As was stated 2 years ago - this was only a matter of time with such poor management and a company that could only survive in a rising market. According to bloomberg:
Martinsa Shares Are Suspended After Bankruptcy Report (Update2)
By Sharon Smyth
July 14 (Bloomberg) -- Martinsa-Fadesa SA was suspended from trading in Madrid after the newspaper Expansion reported that the developer's creditors expect the company to seek bankruptcy protection this week.
Before the suspension, Martinsa fell as much as 29 percent to the lowest since the shares first traded last year. The Madrid-based company's market value has fallen to 680 million euros ($1.1 billion), less than half of a peak reached in March.
``A weak real-estate market, along with the problems developers are having with refinancing their massive debts, increase the possibility that companies seeking protection end up suspending payments,'' said Francisco Salvador, a director at Venture Finanzas SA, a Madrid-based broker.
Spanish real estate companies are struggling with higher financing costs after a residential housing slump coincided with more than $400 billion in mortgage-related writedowns and losses at financial firms. The five largest developers in Spain have lost 6 billion euros in market value so far this year. Eleven developers including Grupo Llanera, Seop, Labaro, Jale, Prasi and Cosmani have sought protection from creditors since October.
On July 11, Martinsa asked the banks that refinanced the company's debt for more time to secure a 150 million-euro loan. Martinsa asked to borrow the money from the Institute of Official Credit, a state-run credit agency, and will hold a board meeting at 4:30 p.m., a spokesman said.
Assets Decline
Martinsa has 5.2 billion euros of debt. Its assets are valued at 9.7 billion euros, down from 13 billion euros in June 2007, according to regulatory filings.
The company was formed from the merger of Grupo Martinsa and Fadesa Inmobiliaria SA, which was bought by Grupo Martinsa for 4 billion euros last year. Chairman Fernando Martin is the largest shareholder with a 60 percent stake.
Martinsa owns houses, holiday resorts and shopping malls and golf courses in Spain, Morocco, Poland, Mexico and Portugal.
La Caja de Ahorros y Pensiones de Barcelona and Caja Madrid, Spain's two largest savings banks, have loaned more than 1 billion euros to Martinsa, while Banco Popular Espanol SA, Spain's third-biggest bank, has loaned 400 million euros, Expansion said.
Eloy Ecija, a spokesman for Banco Popular, and spokeswomen for La Caixa and Caja Madrid declined to comment on the newspaper report.
The number of Spanish companies seeking protection from creditors more than doubled to 1,010 in the first half. A slump in the country's residential-property industry has increased the indebtedness of many construction companies and developers.
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Glass pipes
Martinsa Shares Are Suspended After Bankruptcy Report (Update2)
By Sharon Smyth
July 14 (Bloomberg) -- Martinsa-Fadesa SA was suspended from trading in Madrid after the newspaper Expansion reported that the developer's creditors expect the company to seek bankruptcy protection this week.
Before the suspension, Martinsa fell as much as 29 percent to the lowest since the shares first traded last year. The Madrid-based company's market value has fallen to 680 million euros ($1.1 billion), less than half of a peak reached in March.
``A weak real-estate market, along with the problems developers are having with refinancing their massive debts, increase the possibility that companies seeking protection end up suspending payments,'' said Francisco Salvador, a director at Venture Finanzas SA, a Madrid-based broker.
Spanish real estate companies are struggling with higher financing costs after a residential housing slump coincided with more than $400 billion in mortgage-related writedowns and losses at financial firms. The five largest developers in Spain have lost 6 billion euros in market value so far this year. Eleven developers including Grupo Llanera, Seop, Labaro, Jale, Prasi and Cosmani have sought protection from creditors since October.
On July 11, Martinsa asked the banks that refinanced the company's debt for more time to secure a 150 million-euro loan. Martinsa asked to borrow the money from the Institute of Official Credit, a state-run credit agency, and will hold a board meeting at 4:30 p.m., a spokesman said.
Assets Decline
Martinsa has 5.2 billion euros of debt. Its assets are valued at 9.7 billion euros, down from 13 billion euros in June 2007, according to regulatory filings.
The company was formed from the merger of Grupo Martinsa and Fadesa Inmobiliaria SA, which was bought by Grupo Martinsa for 4 billion euros last year. Chairman Fernando Martin is the largest shareholder with a 60 percent stake.
Martinsa owns houses, holiday resorts and shopping malls and golf courses in Spain, Morocco, Poland, Mexico and Portugal.
La Caja de Ahorros y Pensiones de Barcelona and Caja Madrid, Spain's two largest savings banks, have loaned more than 1 billion euros to Martinsa, while Banco Popular Espanol SA, Spain's third-biggest bank, has loaned 400 million euros, Expansion said.
Eloy Ecija, a spokesman for Banco Popular, and spokeswomen for La Caixa and Caja Madrid declined to comment on the newspaper report.
The number of Spanish companies seeking protection from creditors more than doubled to 1,010 in the first half. A slump in the country's residential-property industry has increased the indebtedness of many construction companies and developers.
________
Glass pipes