Banks give Metrovacesa owner respite on debt-report

MADRID, Nov 1 (Reuters) - The owners of Spain's largest property firm, Metrovacesa (MVC.MC), have been given another month by creditors to renegotiate a syndicated loan estimated at 4-5 billion euros, newspaper Cinco Dias reported on Saturday.

The Sanahuja family told Reuters on Oct 23 it was exploring the possibility of ceding some if its 80.6 percent holding in the company to the banks in exchange for a reduction in debt that it used to build the stake. Cinco Dias quoted sources as saying the Sanahuja family and banks including Banesto (BTO.MC), Santander (SAN.MC) and HSBC HSBA.MC "are about to reach an agreement about the refinancing of the debt".

"(The two sides) have been given a further 30 days to resolve some points though it had been expected to be signed this week," the source said.

The Sanahuja family could not be reached for comment on Saturday.

CITY DEAL A MYSTERY

Meanwhile, a deadline passed on Friday for debt-strapped Metrovacesa to pay the property arm of UK insurer Legal & General (LGEN.L) around 230 million pounds for the City of London's Walbrook Square office development.

A source close to the deal has told Reuters L&G is minded to extend the deadline and would be prepared to accept an initial part payment, understood to be around 50 million pounds [ID:nLR488107].

Spokespeople for both companies declined to comment on whether a deal had been struck before the Friday deadline.

Metrovacesa and L&G reached a deal to delay the payment, Spanish newspaper Expansion reported on Saturday without citing sources, however it added the two remained at odds over when Metrovacesa would pay.

It said the Spanish firm was pushing for a year's grace period and L&G was seeking payment within three months.

Metrovacesa, which has 12.9 billion euros of assets but debts of 7.1 billion, is also trying to refinance 810 million pounds of short-term debt it used to buy HSBC's London headquarters before the Nov 27 deadline.

The company had a market capitalisation of 3.8 billion euros at Friday's close. (Reporting by Ben Harding; editing by Chris Pizzey)