Tuesday, February 19, 2013
Spain's Reyal Urbis Files for Protection
Wed., February 20, 2013
Reyal Urbis SA, a real-estate firm that became a stock-market darling before Spain's property boom went bust, said it would file for bankruptcy protection in what could become the second-largest default in Spanish corporate history, The Wall Street Journal reported. The firm, born of the merger of Inmobiliaria Urbis and Construcciones Reyal a year before the real estate crash of 2008, said in a statement Tuesday that it expects to reach an agreement with its creditors. Under Spanish law, such a deal—even if it involves a debt default, which financial analysts consider likely—would allow it to avoid liquidation. Reyal Urbis, controlled by construction tycoon Rafael Santamaría, owes €3.6 billion ($4.81 billion) to a group of banks including SAREB, the government-run "bad bank" created last year to buy nonperforming property loans and other assets from the country's ailing commercial banks. It was unclear whether Reyal Urbis' bankruptcy filing would have a negative impact on SAREB and the government's finances.