The court-appointed administrators of Spanish developer Martinsa-Fadesa, the biggest company ever to go into administration in Spain’s history, are considering what to do about the refinancing deal the company struck with its bank creditors before it was forced into administration.

The administrators are worried that the deal to refinance 4 billion Euros of debt, which failed to keep the company solvent, may end up harming the interests of other creditors.

On 8 January a Judge handling the Martinsa-Fadesa case ruled that the banks cannot use some of the assets provided as collateral in the deal. This could be the first step towards scrapping the agreement between Martinsa-Fadesa and 45 lenders to refinance 4 billion Euros of debt.

The administrators argue that the agreement failed in its primary objective to keep Martinsa-Fadesa afloat – it was forced to seek protection from its creditors just 2 months later – and harms the interests of both Martinsa-Fadesa and the rest of the creditors.

A decision to rescind the refinancing agreement would favour small creditors like the hundreds of Britons who have paid money to Martinsa-Fadesa, but have no home to show for their stage payments.