Reyal Urbis' major creditors have made an offer to restructure the debt-laden Spanish real estate developer's EUR 4.8 bn of debt, Dow Jones reported, quoting a financial source close to the process. Reyal must agree to the creditors' conditions outlined in a term sheet which has been agreed by 10 of Reyal's biggest creditors.
Reyal Urbis' major creditors have made an offer to restructure the debt-laden Spanish real estate developer's EUR 4.8 bn of debt, Dow Jones reported, quoting a financial source close to the process. Reyal must agree to the creditors' conditions outlined in a term sheet which has been agreed by 10 of Reyal's biggest creditors.
After Reyal's approval, the proposal will be sent to the remaining banks that are part of a consortium of over 50 creditors. Reyal's major creditors include Banco Santander, Barclays, BBVA, Caja Madrid, Banco Popular, Banco Sabadell and Bancaja.
The terms are similar to an earlier proposal made by Reyal's advisor, Lazard. Reyal in October proposed a new plan that would allow it to continue to operate while it sells off some of its assets. The company asked not to pay interest or downpayments until 2012, applied for a new a bridge loan and pledged to reduce its costs and freeze ongoing developments.
In October, the troubled Spanish developer put some of its trophy assets on the market in a move aimed at raising capital. The company hired JLL and Aguirre Newman to sell EUR 300 mln worth of assets, including the ABC shopping centre in Madrid's famous Serrano street, and its Urbis Centre de Pozuelo business park in Alarcón near Madrid.
