The credit crunch claimed its first Spanish victim yesterday as Llanera, a Valencian real estate group, admitted it was in emergency talks with its creditor banks. Financial Times

A spokesman said it was seeking to renegotiate €300m ($419bn, £209bn) in debt owed to suppliers and local savings banks in Valencia.

’We have a liquidity crisis and we are talking to our banks in order to avoid filing for protection from creditors,’ Llanera said.

Yet only a few months ago Llanera was fêted as an innovative and ambitious real estate group, which reported sales of €418m last year. It was also a sponsor of the UK’s Charlton Athletic Football Club.