The creditor banks of Spanish property company Colonial may end up controlling nearly 90% of the troubled real estate developer if they sign a refinancing agreement currently under negotiation, Spanish financial paper Expansion has reported.
The creditor banks of Spanish property company Colonial may end up controlling nearly 90% of the troubled real estate developer if they sign a refinancing agreement currently under negotiation, Spanish financial paper Expansion has reported.
The co-ordinating banks of the EUR 4.2 bn syndicated loan are Royal Bank Scotland Group (RBS), Calyon, Eurohypo and Goldman Sachs. The potential deal, which could be signed by the end of November, would see the international banks take control of the company, replacing Spanish lenders La Caixa and Popular, the majority owners of the group. La Caixa and Popular were the main creditors of Colonial's former chairman Luis Portillo.
Colonial has been negotiating the refinancing agreement since January, according to the paper. Its total debt amounts to over EUR 6.3 bn.
Other banks included in the negotiations for the refinancing line are ING, Caja Madrid, BBVA, Banco de Valencia, Post Bank and La Kutxa. Lazard is advising Colonial on the refinancing process.
