The board of troubled Spanish real estate developer Colonial has approved the terms and conditions of a plan to restructure around EUR 4.9 bn of debt. In a statement to the Spanish stock market regulator CNMV, Colonial said that it will continue to negotiate with its creditor banks to receive approval on the refinancing programme.
The board of troubled Spanish real estate developer Colonial has approved the terms and conditions of a plan to restructure around EUR 4.9 bn of debt. In a statement to the Spanish stock market regulator CNMV, Colonial said that it will continue to negotiate with its creditor banks to receive approval on the refinancing programme.
The plan is said to include the conversion of roughly EUR 1.7 bn of debt into shares and the transfer of Colonial's development and land portfolio worth some EUR 1 bn to a new company in exchange for an extension on the terms of the loan.
Colonial, which has a debt burden of EUR 6.2 bn, was forced to re-open negotiations with the banks in June 2009, only a year after reaching an agreement. Lazard is advising Colonial on the process. The company's debt includes a EUR 4.2 bn syndicated loan coordinated by the Royal Bank of Scotland (RBS), Calyon and Eurohypo. Last December, Colony Capital and Orion Capital Managers acquired Goldman Sachs' portion of the loan.
Similarly, Spanish group Reyal Urbis said that it is in talks to swap part of its debt for EUR 400 mln worth of real estate as part of a EUR 4.8 bn refinancing plan.
