As the old saying goes, if you owe the bank a thousand, you have aproblem, if you owe them £10 mill they have a problem. Its in the interests of all the players to re-structure the debt. The banks want to ensure the value of the underlying assets does not depreciate markedly, and Big F want to complete off CE and get near to existing market value from remaining properties. Sure Mr F may well be incentivised to sell properties cheaper than previously because property prices are softening - but panic - what does that achieve? Nothing. Time for a spot of bargain hunting possibly...
One piece of advice to Mr F would be to ensure all the utilities are connected - I am sure there will be plot buyers wanting to take advantage of keener prices on the builds - and this would be a good thing.

Couldn't agree more but how do we put pressure on MF to get the BL**DY leccy on. They glibly say end of the month every month since October. No sign yet and they now say it is all down to Endessa but we have no pull with Endessa who seem to behave just like a big bad nationalised company and you can't even talk to them. Just imagine the scenario where the "International Bank" is American and they have big problems at home they might just say no we want out no matter what. It could be the crack in the wall.

Totallly agree. A debt restructure is not the same as 'Serious cash flow problems'. Companies restructure debt all the time. MF are huge by any stretch of the imagination. Anyway - the site is looking better all the time and MF have done an excellent job - its a massive undertaking.

The only pressure is to withhold final payments. At the moment most plots must owe 50% of the original price - now - if you or I were in charge I am sure we would move mountains to get the leccy on! But we are not. I would expect any finance re-structure to have an agreement in place that expects a maximum release of funds at any point in time subject to 1) a maximum of Net Debt per the balance sheet or 2) Net Monthly cash Flow etc or 3) EBIT for the period d) Various other combinatioins! In which case I would expect the pressure to come from the banks to incentivise Fadessa by way of this drawdown facility to get the money in and that means pressure on Endessa to turn the leccy on which means Fadessa gets its money! Anyway I am out there next week - I'll have a word with Mr F :-)

I'm the plonker who paid up. You just tell Mr F to extractum digitum!

Yes I will tell him to pull his finger out

I'm sorry but I disagree. Fadesa has not made an interest payment...it is fire selling assets....the spanish stock exchange gives a warning....Fadesa issues a warning on a sunday....it has been working on debt restructure since Dec with sime urgency and no deal done yet. 4 mid ranking spanish developers have gone pop.....it is seeking to extend payment terms with creditors.

To be clear, if it walks like a duck and talks like a duck.....hey it is a duck.

Fadesa has cash flow problems....

I'm not sure the markets are quite so pessimistic.

Martinsa Fadesa shares were first quoted in late December. They opened at about Eur 17 per share, but fell to about 14 or 15 where they seem to have bumped along happily, on low trading volumes, until early Feb. They then rose a bit, reaching the issue price of 17 or so in late Feb, before dropping sharply back to 14 in the first week of March.

But from Mar 10, they have jumped considerably, to just short of 20 Eur. Nearly 50% of that increase has been in the last 3 days (from just above 17 at close of business Fri 21, to 19.50 at present). Most of that rise occurred actually on Mon 17th, after an initial fall.

You can all read into that what you wish, and no doubt you will, but you may feel entitled to take the view that the market appears to have reacted very positively indeed to some news it heard first thing on Mon 17th.

Thankyou for this.

This certainly presents things in a better light.

And the stock market knows more than you or I ever will. Its a strong indicaton that the stock price increase is pricing in the fact that debt will be re-structured to all the major players mutual advantages.

A fire sale is what Bear Sterns were forced into. The type of increase in share price that Fadesa has seen is not an indication of a fire sale. Stock Market Capitalisation value increasing - yet asset value decreasing due to a 'fire sale' is completely contradictory. There is no fire sale there is a debt re-structure as simple and as boring as that.

Hola!
Yes, I know, I'm quoting myself...but, should I get out the big "brown" umbrella?
Does this "cloud have a silver lining"? Would some people be "throwing the baby out with the bath water"?
I am not being flippant.

Karen's (billybassett's) post re: VPO I found very interesting, and our first thought was about the (possible) positive aspect towards CE as a community in the future. VPO is not a new concept, surely? I believe there have been/are similar schemes in the UK, and, for instance, in Austria (Vienna).

Now, to end on a lighter note, has anyone noticed a "teenager" in our midst called jdr?

Buenas noches mis esurianos,
Carol

You are all like the profits of doom..

Sorry, but you are quite wrong. The Prophets of Doom are far more positive and constructive

Funny, but they used to call a few of us others that a couple of years ago.