October 19, 2012 / 5:16 PM / in 5 years

Two Spanish road operators enter administration

2 Min Read

MADRID, Oct 19 (Reuters) - Two Spanish road maintenance companies, whose shareholders include builders Ferrovial and Sacyr Vallehermoso, have gone into administration, the latest companies to go under in Spain's worst recession in 50 years.

Autopista Madrid Levante Concesionaria and Inversora de Autopistas de Levante managed a toll road built in central region Castilla La Mancha during Spain's construction boom.

Ferrovial and Sacyr said the investments had been written off their balance sheets, and would not have a significant impact on their profit and loss accounts.

A near-decade long housing and construction boom in the euro zone's fourth largest economy crashed in 2008, bankrupting builders and dumping foreclosed property and bad loans on creditor banks.

Lower-than-expected traffic flow, the economic crisis and increased capacity in alternative routes all make it impossible to meet its payment commitments with lenders, the companies said in a statement on Friday.

A month ago two other road maintenance companies, also held by Ferrovial and Sacyr, filed for administration for the same reasons. (Reporting by Jesús Aguado; editing by Sonya Dowsett and James Jukwey)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below