The developer Polaris World, a privately held Spanish real estate company, is in talks with lenders to avoid filing for protection from creditors.
Bloomberg reports that the company now has three months to reach an agreement. According to a company filing in May 2009 the company’s lenders, including Banco Popular SA and Spanish savings bank Caja Murcia, agreed to cancel €970 million of debt in return for real estate assets.
Banks, however, continue to be the major creditors. Some commentators put the company’s indebtedness at €100m but other estimates are much higher.
The Government of Murcia has voiced support for the complex, with the owners and directors hopeful that new terms can be negotiated to avoid further action and court appearances.
Polaris World, which employs around 700 people, is known throughout Europe for its golf courses (dubbed the “Nicklaus Trail”), football complex, residences and quality hotels. “All that can be done shall be,” according to the directors and management.
Polaris World www.polarisworld.com