Aisa joins growing list of ailing real estate firms
The Spanish property company is the latest to fall prey to the global credit crunch.15 April 2008
MADRID - Aisa has become the latest Spanish property company to run foul of a slump in the housing market and a dearth of funding due to the global credit crunch.
Aisa's share price closed down EUR 13.50 percent at 1.73 percent after having plunged at one point by over 20 percent to EUR 1.59. Several media outlets reported over the weekend that one of Aisa's creditors had filed a suit to have the company declared insolvent.
In a statement to the National Securities Commission (CNMV), Aisa said it had received no notification of any move for it to be placed under receivership.
"Despite the current difficult situation the sector is going through, Asia has met, and will continue to meet, all of the commitments it has assumed with its creditors and suppliers," the statement said.
Aisa acknowledged it had a debt of EUR 1.3 million with local insurer Asefa that was due on 10 April. Aisa insisted it would be repaid soon. It said its total financial debt stands at EUR 405.3 million, including a syndicate loan of EUR 60 million whose payments are up to date.
A number of smaller real estate firms this year have sought legal protection from creditors, citing a lack of liquidity. Home sales plunged 27 percent in the first month of this year. Property firms have built up stocks of unsold homes that reduce their capacity to pay back debt from cash flow.
[El Pais / Adrian Soto / Expatica]