Valencia property developer Llanera has become the first high-profile Spanish victim of the credit crunch, declaring insolvency yesterday after failing to make payments on €748m of debt. The Daily Telegraph

The builder, which is known for its links to Charlton Athletic Football Club, was unable to reach agreement with Lehman Brothers and other banks on a refinancing deal.

Llanera said it faced ‘extreme difficulties’ as a result of reliance on short-term borrowing and the squeeze on the ‘evolution of the Spanish property market and the relentless increase in Euribor’. The Euribor rate, which is used to price floating rate mortgages in Spain (98% of the total), has jumped to a six-year high of 4.72%.