MADRID, June 18 | Tue Jun 18, 2013 1:59pm EDT
(Reuters) – Spanish property developer Bami has filed to begin insolvency proceedings, a spokesman said on Tuesday, the latest in a series of real estate groups and other firms in the recession-hit country to struggle to refinance their debts.
Dozens of property firm have already collapsed in Spain, where house prices have fallen some 40 percent from their 2007 peak, and banks that have set aside money to cover losses in the sector are becoming tougher with those that remain.
Unlisted Bami, 49 percent owned by French property firm Gecina, has 620 million euros ($830 million) of debt with banks.
“A year ago we began negotiations with our syndicate of creditors to refinance the debt and we have not been able to reach an agreement,” a spokesman said.
France’s Natixis, Spain’s Banco Popular and German lender Eurohypo are its main lenders, Bami said.
A record number of Spanish companies filed for bankruptcy in the first quarter. On Monday, Spanish plastic bottle maker La Seda de Barcelona also started insolvency proceedings. ($1 = 0.7467 euros) (Reporting by Robert Hetz; Writing by Sarah White; Editing by Julien Toyer and David Holmes)