- June 29, 2010 at 3:35 pm #55718
The Barcelona-based developer Sacresa has asked the courts for protection from its creditors.
Sacresa owes a group of banks around 1.8 billion Euros, including 320 million Euros to RBS. Most of the debt came from Sacresa’s hostile takeover of Metrovacesa, another developer.
This is the 3rd biggest bankruptcy proceedingi in Spain after Martinsa-Fadesa and Habitat, also developers.
Sacresa is a family owned company that belongs to the Sanahuja family. The Sanahuja first made their money building homes for immigrants moving to Catalonia from the South of Spain in the Franco era.
I do not know if Sacresa sold any developments to holiday-home buyers from Europe. Few, if any, is my suspicion.
- June 29, 2010 at 5:39 pm #99381
RBS seems to have been lending to many companies in Spain and Dubai, should we be worried. I heard something on radio whilst driving and they said if Spain falls then the UK will have serious problems 😕
- June 30, 2010 at 6:03 am #99393
In a global world. It’s difficult to compare two countries, in this case Spain and the UK.
Spain’s construction industry failed, and the UK’s banking industry failed which are both ongoing disasters. Spain is left with empty houses that nobody wants and the UK has banks which are technically insolvent without further government bailouts.
Today’s financial press is panicking again and the big question is ‘who is going to lend money to countries that need to borrow?’
Spain, at least, doesn’t stand alone, it has its Eurozone partners; where does the UK turn?
Please don’t suggest the US, they’ve already got the highest debt in the world.
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