Madrid: Spanish property developer Bami has filed to begin insolvency proceedings, the latest in a series of real estate groups and other firms in the recession-hit country to struggle to refinance their debts.
Dozens of property firms have collapsed in Spain, where house prices have fallen 40 per cent from their 2007 peak, and banks that have set aside money to cover losses in the sector are becoming tougher with firms still in business
Unlisted Bami, 49 per cent-owned by French property firm Gecina, has €620 million ($830 million) of debt with banks. “A year ago we began negotiations with our syndicate of creditors to refinance the debt and we have not been able to reach an agreement,” a Bami spokesman said.
France’s Natixis, Spain’s Banco Popular and German lender Eurohypo are the company’s main lenders.