Spanish banks take over firm

Bloomberg

Banco Santander, Banco Bilbao Vizcaya Argentaria, Banco Espanol de Credito, Banco Popular, Banco Sabadell and Caja Madrid canceled 2.2 billion euros ($2.8 billion) of debts owed by the Sanahuja family in return for 54.8 percent of Madrid-based Metrovacesa, the developer said in a regulatory filing. The value agreed for the transaction was 57 euros a share.

Metrovacesa and the Sanahuja family amassed debts of 7.1 billion euros and 4 billion euros, respectively, as they bought real estate across Europe during the boom in property prices. When credit markets dried up and real estate values slumped last year, debt repayments became harder to meet.