Spanish property group Inmobiliaria Colonial has agreed to a €7bn (£5.55bn) debt restructuring, including the sale of assets worth €2bn, in an attempt to keep the troubled company afloat.
Colonial will sell 33pc of its 84pc stake in French property group Societe Fonciere Lyonnaise, a 15pc share in builder Fomento de Construcciones y Contratas (FCC) and the whole of struggling shopping centre developer Riofisa.
Colonial, which has lost 84pc of its market value so far this year, owes €6.5bn to banks including Goldman Sachs, Calyon and Royal Bank of Scotland.
The loans, which were used buy rivals in 2007, will be extended for five years.
The Daily Telegraph