Share trading for Rental Corporacion, the Spanish property firm, was suspended last Tuesday after reports surfaced that the company's board was contemplating opting for insolvency. The company stands deep in debt in the amount of Eur159 million last 2012 and at the suspension was down 3.4% to close at Eur0.57.
Currently, Renta is not the only property company in Spain in the red and are struggling to make debt payments because of the extended recession in the European real estate market has hit the business hard and caused prices to tumble.
This rumor was confirmed by Reuters as Renta Corporacion Real Estate SA will be filing for insolvency in order to make debt payments. The notice has been forwarded to many of the creditors of the firm such as Banco Popular, Deutsche Bank, ING Real Estate Finance, Caixabank, SAE, Banco Caixa Geral and Sareb. As of the Reuters report, standing debt of the Spanish firm is at Eur162 million or US$210 million.
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