Spain says toll roads debt deal unlikely as yet

MADRID, June 25 Wed Jun 25, 2014 2:01pm EDT

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MADRID, June 25 (Reuters) - A deal on a 2.3 billon-euro debt rescue for nine failed Spanish motorways has still not been reached between Spain's government, banks and builders just three weeks before a possible deadline for the first of those assets to be liquidated, Spain's Public Works Secretary said on Wednesday.

The meeting of creditors for the AP-36 motorway between Ocana and La Roda, in the central region of Castille-La Mancha, is to take place on July 18. Ferrovial and Sacyr are shareholders in the road.

"We are still working on it, studying it with Brussels," Rafael Catala told reporters at a conference.

Asked if he thought that an agreement would be reached by July he replied "I don't think so."

Talks have centred on creating a state-owned holding company to manage the motorways with the minimum impact on state coffers and without it constituting state aid. (Reporting by Teresa Larraz; Editing by Sonya Hepinstall)