Llanera, the first big Spanish developer to go into administration owing millions of Euros to British and other foreign buyers, looks likely to be the first developer to emerge from court protection after restructuring its debts.
The Spanish press reports that Llanera has done a deal with creditors to pay back just 65% of its debts over 8 years. After 2 years in court administration, the deal is expected to be approved in a Valencian court tomorrow.
Llanera, which did a £6.6m sponsorship deal with the football club Charlton Athletic in December 2005, was forced to seek protection from creditors in October 2007, unable to cope with 700 million Euros of debt and less than 5 million Euros in annual sales.
Owing more than 100 million pounds to the American investment bank Lehman Brothers, whose collapse in September 2008 sent world financial markets into a tailspin, Llanera was the first big Spanish developer to run out of money as the Spanish property boom turned to bust. Since then many others have followed Llanera into the arms of court administrators, including Martinsa Fadesa and Aifos.
Any former clients of Llanera still owed money should contact their legal representatives to see how this news affects them.
See also Spanish Property Doctor article (written for The Sunday Times) Spanish developer Llanera has run out of cash – but what does that mean for Britons who have invested in Spanish property?