I may be able to shed some more light on the plight of IRM. The company is actually owned by Banco Valencia, Banco Sabadell and Banco Popular/Caxia. They have assets valued at €668 million although that valuation is suspect and predates the crash.
IRM own five former PW golf courses in Murcia, two luxury hotels and various bars and restaurants. All of which are uneconomic. Only one golf course, Mar Menor makes a modest profit. The problem is caused mainly by the huge cost of water in a desert region. Golf courses are classed as industrial and pay a premium for water. IRM have been trying to get their water re-classified as rural but the water companies will not play.
The bad bank (SARB) have previously been forking out huge sums to keep these golf courses viable in the hope a buyer can be found. The banks will not sell them off individually and seek a buyer for the entire portfolio.
Now IRM have been forced in bankruptcy protection in a move designed to force the SARB to cough up more cash to keep them going. They (IRM) have four months to make payments to their creditors or fold. It’s unlikely the banks involved will help out.
For the SARB it’s a question of throwing good money after bad in the hope an investor can soon be found. That will be a decision for the Bank of Spain.
However even Bill Gates may balk at this loss cause. Then again maybe not since he has just put millions into FCC who are equally struggling. Mr Gates has many qualities but I’m not sure investing on a global scale is one of them. 🙂
If IRM do fold these communities will be in further serious difficulties since golf is their life blood. Properties have already fallen around 60 -70% of their original value and many former PW communities are debt burdened at owners fail to meet their obligations.