The Sanahuja family, owner of over 80% of Spain's debt-laden property firm Metrovacesa, is seeking to exchange its mountain of debt with its banks for company shares.
The Sanahuja family, owner of over 80% of Spain's debt-laden property firm Metrovacesa, is seeking to exchange its mountain of debt with its banks for company shares.
The deal could involve giving the banks gaining control of up to 50% of Metrovacesa's share capital.
In a statement to the Spanish stock market regulator CNMV, Metrovacesa said that the creditor banks would be prepared to consider the deal. The Sanahujas have as much as EUR 5 bn in debt guaranteed in company shares.
The family added that the banks could also consider extending the company additional credit lines for three years, possibly in return for the property assets. Under the deal, no bank will take a stake of over 30%, the threshold at which any company in Spain is required to launch a takeover bid.
The family has until 30 November to broker a deal with the syndicate of banks.
Metrovacesa, which has built up debts of EUR 7.14 bn, said last week it is to pay for its £240 mln (EUR 296 mln) acquisition of a City of London complex from UK financial services group Legal & General in quarterly amounts. The parties announced on Friday that they had reached agreement on the payment programme for the acquisition of Walbrook Square complex in the City of London financial district. Metrovacesa has already made the first payment of £42 mln.
