* Grupo Rayet owns 42 percent of Quabit
* Has 593 million euros liabilities - Quabit spokeswoman
* Quabit says Rayet's woes do not affect its own viability
* Quabit shares down 8.7 percent
(Adds detail, background)
By Tomás Cobos
MADRID, Nov 9 Grupo Rayet, a leading shareholder
in the stock exchange listed property group which came to
symbolise Spain's real estate boom and bust, is to file for
bankruptcy after failing to renegotiate its debt.
Grupo Rayet, which owns 42 percent of listed real estate
investor Quabit, said in a statement on Friday it would
file for bankruptcy protection within the next few days after
one creditor held out in talks on restructuring.
Rayet had 593 million euros ($755 million) of liabilities,
302 million of which is financial debt, a spokeswoman for Quabit
"This is not going to affect Quabit's business other than
possible movements on the stock market," she said. "This is
precisely about safeguarding the interests of the other
companies Rayet has holdings in."
By 1245 GMT Quabit shares were down 8.7 percent at 0.042
euros, one of the largest declines in Spain on Friday.
Then called Astroc, Quabit's stock price jumped more than 10
times in less than a year after it was launched on the Madrid
stock exchange in May 2006.
But an auditor's report in 2007 saying owner Enrique
Banuelos had bought property from his own company equivalent to
65 percent of annual turnover, which had since lost around 85
percent of its value, sent the price plummeting and resulted in
Banuelo's exit from the company.
Banuelos also lost his place on the Forbes 100 list of
wealthy people when Spain's decade-long boom fuelled by cheap
credit turned to bust.
House prices have fallen by as much as 40 percent from their
2007 peaks, while Spanish banks have had to take huge
write-downs on property assets. More than half a million new
homes in Spain lie empty.
Two Spanish investment firms that own 31 percent of French
property company Gecina filed one of the biggest
bankruptcy actions in Spanish history after a bank refused to
refinance a 1.6 billion euro loan last month.
($1 = 0.7857 euros)
(Additional reporting and writing by Tracy Rucinski and Clare
Kane; editing by Patrick Graham)