Martinsa Fadesa, the Spanish developer which entered administration last year, has announced that a majority of its creditors has agreed to a new timetable for debt repayment.
Martinsa Fadesa, the Spanish developer which entered administration last year, has announced that a majority of its creditors has agreed to a new timetable for debt repayment.
The financial plan was backed by almost 55% of its creditor banks. It will see the Spanish company pay back 2% of a syndicated loan of over EUR 5 bn before May 2010 and 3% in 2011, Spanish newspapers reported.
The repayments will rise to 25% towards 2015 and 2016. Following talks with court-appointed administrators, Spanish banks Caja Madrid, La Caixa, Popular, Bancaja, Caixa Catalunya and Caixa Galicia backed the plan. Morgan Stanley and Royal Bank of Scotland have not yet signed up.
According to Spanish newspaper El Pais, shareholders supported a resolution put to Martinsa's annual shareholders meeting last week to cut the salary of chairman Fernando Martin by 38%.
