Colonial seaks deal with creditors next week -source

By Elena Moya

LONDON, Sept 5 (Reuters) - Troubled Spanish real estate company Colonial (COL.MC) will meet creditors and shareholders next week to reach an 8.9 billion euro ($12.7 billion) debt restructuring deal aimed at saving the company from bankruptcy, a source familiar with the situation told Reuters on Friday.

The deal would seal a waiver on the company's debt -- only agreed on a non-binding basis earlier this week --, a plan to sell assets and injection of new capital through a new subordinated loan, the source said.

An additional issue of a convertible bond in the future will also be considered, the source said.

"The negotiations on Monday and Tuesday in Madrid will be intense," the source said.

The waiver is needed as failure to meet interest payments gives creditors the right to push the company into administration.

Colonial's main creditors include RBS (RBS.L), Calyon (CAGR.PA), Eurohypo and Goldman Sachs (GS.N). Main shareholders include Banco Popular (POP.MC) and La Caixa, which earned the equity after swapping some debt earlier this year.

Investors are expected to put about 100 million euros of new money through the new subordinated loan, the source said.

The agreement is also expected to include the appointment of new advisors to sell three assets: A 15 percent stake in Spanish builder and services firm FCC (FCC.MC); 33 percent of French real estate company SFL (FLYP.PA) and Colonial's wholly owned affiliate property firm Riofisa.

Colonial is trying to avoid administration. The company's largest real estate company, Martinsa Fadesa (MFAD.MC), filed for administration in July, hit by the global credit crunch and the collapse of the Spanish real estate market. (Editing by Greg Mahlich)