Grupo Rayet – owner of Quabit, one of Spain’s biggest developers, listed on the Madrid stock exchange – has announced that it will going into voluntary administration in the next few days to get protection from its creditors. Another one bites the dust.
We are going to see a second round of bankruptcies as banks pull the plug on zombie developers they’ve been keeping alive these last few years.
I posted on a topic a while ago that the Banks have also been supporting large Spanish Corporates for fear that they will go bust, rescheduling their loans, kicking the can down the road further, putting extra pressure on the Banks as well as the Businesses. As the Corporates go bust so the Banks themselves become more vulnerable 🙄
Of course the developers go bust, and the people running them start again with a new company and no debt, leaving the banks with the bad debt, but thats no problem, the state will rescue the banks and put the bad debts in the bad bank which will be bailed out by the EU etc then will slowly disappear when everyone has forgotten about it and so the world goes on, the tax payer pays for the greed of the bankers and politicians and everyone is happy……
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