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Spain's Martinsa Fadesa to file for administration

Mon Jul 14, 2008 4:29pm EDT

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MADRID/LONDON, July 14 (Reuters) - Spanish property company Martinsa Fadesa (MFAD.MC) said it would file for administration after it failed to raise funds and meet debt payments, marking one of the biggest corporate failures in the country's history.

Martinsa Fadesa, with 5.4 billion euros ($8.48 billion) of debt, said the move was triggered by its failure to raise a 150 million euro loan -- a requisite of 4 billion euro refinancing agreement earlier this year.

Martinsa Fadesa had asked its 47 creditor banks for the deadline to be extended until Aug. 7.

The administrators will now start selling assets to repay creditors, including Caja Madrid, La Caixa, Ahorro Corporacion and Morgan Stanley (MS.N).

(Reporting by Carlos Ruano, Clara Vilar and Elena Moya)



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