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Metrovacesa to return $539.4m property as debt repayment

By Reuters

Owners of a Spanish real estate development company Metrovacesa SA will have to hand over property worth $539.4 million (Dh1,981m) back to the company as a debt repayment, according to a Deloitte's audit report.

Six creditor banks took over the family's 55 per cent stake in the company in exchange for the cancellation of the family's debt of €2.17bn.

The assets with a gross asset value of €421m also have a debt associated for €279m. The family will also have to hand over €92m in cash.

"The deal was signed on Friday, and the assets will be handed over shortly," a spokesman for the Sanahuja family said.

According to Deloitte, there were doubts if the agreement would become a reality and said the Spanish development firm also had breached conditions of a syndicated loan of €3.2bn.