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It seems that the credit crunch is spreading across Europe as British demand for holiday homes dimishes. Many areas in mainland Europe rely on the demand from Britain for property in order to keep its market bouyant.
In addition, a large number of Brits are cutting back on luxury spending, including spending on holidays. This all has a knock on effect for Europe, where the majority of Brits take their holidays.
Many local economies rely solely on income from tourism to keep them going. A fall in the number of tourists will quickly spell disaster for these areas.
Spanish building firm SEOP is seeking partial debt forgiveness from its creditors. The company was forced to suspend debt repayments in March after a property slump reduced liquidity within the firm.
SEOP was the first large unlisted victim off the decline in demand for property and resulting fall in house prices in Spain.
Today the company has announced that it is propsing to creditors that one third of its 267.2 million euros worth of debt is written off.
The remaining ordinary debt would be paid off over three years if the creditors agree to the plan.
SEOP propose to pay off 180 million euros worth of debt over three years, with 90 million paid during the first year of approval and another 90 million euros paid in two installments in the second and third year.
The company is waiting to hear if their propsal has been approved by its creditors. They are expected to hear in the coming weeks whether their payment plan has been accepted. By: Carys Robshaw
Article Source: www.ArticlesBase.com
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