Spain’s Sanahuja family ceded control of Metrovacesa to creditors, less than two years after completing a leveraged buy-out of one of Spain’s biggest property companies.

The family, which controls more than 80% of the capital, told regulators it would exchange a 54.75% holding in the troubled group for the cancellation of €2.1bn ($2.7bn) of debt. The family will also receive a small cash sum.

BBVA, Banesto, Banco Popular, Banco de Sabadell, Banco Santander and Caja Madrid are the creditors. The banks have also agreed to buy an additional 10.7% stake in a side deal with mainly institutional investors, which the family has the option to buy back within four years.

Financial Times