Spanish Fadesa files bankruptcy, local projects to continue
16 July 2008
Spanish real estate group Martinsa-Fadesa filed for bankruptcy protection, with a debt of about EUR 5.1 billion, the company said. The company had announced investments of over EUR 1.6 billion in the Romanian market through its local subsidiary. Fadesa Romania said that the five residential projects the company plans in Romania would not be stopped.
The Spanish equities commission decided to suspend Martinsa-Fadesa stock trading on the Madrid stock exchange. Martinsa-Fadesa, controlled by Fernando Martin, is the first major victim of Spain’s property crisis, according to Spanish media.
Polish Polnord has already expressed interest in taking over the 51% stake Fadesa holds in the two companies' joint venture, saying it would offer USD 113 million.
The sub-prime mortgages crisis in the USA followed the international financial crisis that started in August 2007. Many lenders in the USA and Europe posted massive decreases in assets due to the crisis.
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