Words: Ashley Rigg
Published: 29th September 2009
Spain: First developer emerges from administration
Llanera, the first large Spanish developer to go into administration due to the economic crisis looks likely to emerge from court protection this week after re-structuring its debts.
Mark Stucklin reports that Llanera has struck a deal to pay back 65% of its creditors over 8 years after spending 2 years in court in administration.
In October 2007, the company sought creditor protection with €700 million of debt with annual sales of less than €5 million. The company owed over €100 million to American bank Lehman Brothers as well owing millions to overseas property investors.
In 2005 Llanera bought a £6.6m sponsorship deal with then Premier League UK football club Charlton Athletic. The former Premier League club is now playing football two divisions lower in Coca Cola League One.
Llanera’s deal is expected to be approved in a Valencian court later today.
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TM Real Estate Group is a Spanish constructor with over 40 years of experience. We have NEVER used bank loans for any of our business activities, and in the first quarter of 2010 we are preparing to launch 4 NEW CONSTRUCTION PROJECTS in Almeria, Mallorca, Murcia (for the Spanish market exclusively) and in Orihuela Costa. With practically all other constructors in the area ground to a halt, we are one of the few who are still building, with new projects in the pipeline. THIS is news, given the current economic situation in Spain...
Dean McCartney,
TM Real Estate Group