Spanish listed office property company Reyal Urbis said this week that it has resumed discussions with its creditor banks regarding a new refinancing of its debt in light of the 'continuing deterioration of the real estate market'.
Spanish listed office property company Reyal Urbis said this week that it has resumed discussions with its creditor banks regarding a new refinancing of its debt in light of the 'continuing deterioration of the real estate market'.
Reyal Urbis is being forced to seek a new credit restructuring just 15 months after agreeing a massive refinancing deal with a consortium of 50 banks.
In a statement to the Spanish stock market regulator CNMV, Reyal Urbis said it has gone back to the negotiation table to stabilise the operational activities of the company in the medium and long term.
'The negotiation process with the financial institutions is aimed at adapting our business plan and the our debt burden to the market situation,' it said. As part of the process, the company has asked its main creditors to create a steering committee which will coordinate the negotiations between all the lenders, which includes international banks Barclays and Eurohypo.
Reyal Urbis, with a debt load of EUR 4.6 bn, signed a long-awaited agreement with the banks in March 2010 which extended the maturity date on its debt to December 2015. The deal also envisaged an initial period until June 2013 in which the company would not pay interest or down payments. As part of the deal, Reyal Urbis exchanged debt for around EUR 400 mln worth of real estate.
