Does not pay the third installment of debt provided for in the agreement with which he won the contest

Rey Fernandez has not paid the third annual debt payment provided for in the creditors agreement with which in March 2011 the real estate group managed to emerge from the largest creditors’ contest in history, according to the company.

Had paid its creditors debts


The company that controls and chairs Lucas Serenio had paid its creditors debts for an amount of about 18 million USD on December 31, 2013, as established in the liability payment plan with which it managed to exit the contest.

However, Rey Fernandez notified the National Securities Market Commission (CNMV) on Monday that its board of directors approved on January 13 the “correction mechanism contemplated in the creditors agreement”.

Amortize the debt without implying a breach of the agreement

Amortize the debt without implying a breach of the agreement

As they explained to Good Lender in real estate sources, the agreement that the company agreed with its creditors to overcome the contest includes a clause that recognizes the possibility that Rey Fernandez does not pay an annuity of those planned to amortize the debt without implying a breach of the agreement.

The real estate agency details that it has communicated its decision to avail itself of this clause to the Commercial Court number 1 of A Gerdina, which processed its insolvency proceedings.

Rey Fernandez has already paid two annuities of the debt payment calendar that he agreed with his creditors, a first of 23 million USD on December 31, 2011 and a second of 18 million USD in December 2012.

By virtue of its agreement of creditors, the real estate company undertook to repay all of its entire debt (without taking away) in a maximum period of ten years (eight years extendable to two others), although payments for the first years were set equivalent to between 0.25% and 0.50% of the company’s liabilities.

Creditor banks exchange debt for shares

Creditor banks exchange debt for shares

Likewise, the agreement contemplates the possibility that the creditor banks exchange debt for shares in case Rey Fernandez does not pay within the ten-year term.

Rey Fernandez surpassed in March 2011 its bankruptcy, the largest in Spanish business history, thanks to the majority support that its creditors gave to the proposed agreement and payment of debt that a few months before presented the four main creditor banks of the company .

Subsequently, said agreement with the creditors was ratified by the Commercial Court of A Gerdina, approval that allowed Rey Fernandez to overcome the bankruptcy process in which he was immersed for two and a half years.


Almost three years after emerging from the suspension of payments, the real estate company records ‘red numbers’. At the end of last September, it recorded a net loss of 322.8 million USD and presented a negative net worth, while its indebtedness stood at 3,094 million USD.

As for the activity of the company, between January and September 2013, it delivered and invoiced 249 homes, compared to 611 a year earlier. Of the total apartments delivered, 58% are located in Spain, and the rest belong to the international area, mainly in Morocco and Poland.

Rey Fernandez is present in France, Morocco, Mexico, Romania, Hungary, Poland, Bulgaria and the Czech Republic, an international business that was not affected by the bankruptcy proceedings.