Comment: Spain's Second Largest Bankruptcy happens: Reyal Urbis

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Spain's Second Largest Bankruptcy happens: Reyal Urbis

Spain's Second Largest Bankruptcy Roils Real-Estate Market, Leaves Tepper Potentially Scuppered?
Spanish property firm Reyal Urbis files for insolvency
By Clare Kane and Tomás Cobos – 13 hours ago

MADRID (Reuters) - Spain's property market crash claimed another victim on Tuesday, as real estate company Reyal Urbis filed for insolvency after failing to renegotiate debt with its creditors.

The move takes the property developer, which had 3.6 billion euros (3 billion pounds) of debt at the end of September, closer to becoming Spain's second-largest bankruptcy after Martinsa Fadesa, which defaulted on 7 billion euros of debt in 2008.

Dozens of property companies have collapsed in Spain, where house prices have fallen around 40 percent since their 2007 peak. With the country locked in a deep recession, analysts expect prices to fall further still.