MADRID, June 18 Spanish property developer Bami
has filed to begin insolvency proceedings, a company spokesman
said on Tuesday, the latest in a series of real estate groups
and other firms in the recession-hit country to struggle to
refinance their debts.
Dozens of property firms have collapsed in Spain, where
house prices have fallen 40 percent from their 2007 peak, and
banks that have set aside money to cover losses in the sector
are becoming tougher with firms still in business.
Unlisted Bami, 49 percent-owned by French property firm
Gecina, has 620 million euros ($830 million) of debt
"A year ago we began negotiations with our syndicate of
creditors to refinance the debt and we have not been able to
reach an agreement," a Bami spokesman said.
France's Natixis, Spain's Banco Popular
and German lender Eurohypo are the company's main lenders, Bami
Separately, Gecina said all assets and liabilities linked to
Bami have been depreciated and are no longer consolidated in its
A record number of Spanish companies filed for bankruptcy in
the first quarter. On Monday, plastic bottle maker La Seda de
Barcelona started insolvency proceedings.