Metrovacesa and its lender HSBC are locked in last minute talks about an £810m bridging loan used by Metrovacesa to purchase the HSBC tower in London’s Canary Wharf which is due to be repaid tomorrow.
Property Week understands that HSBC is unwilling to grant an extension to the loan, which was used to complete the £1.2bn sale and leaseback of the bank’s tower last year.
The troubled Spanish company is thought to be discussing two solutions.
A source close to the negotiations said one solution would be a ‘worst case scenario’ where HSBC took back the tower and retained Metrovacesa’s £300m of equity.
The second solution involves a longer term restructure of the debt but no further details have been revealed. It is thought a decision between the two parties will be made within the next 24 hours.
A spokeswoman for Metrovacesa said: ‘We are still in negotiations with HSBC.’
Yesterday the Spanish stock market regulator demanded that Metrovacesa provided details on its ongoing renegotiations to refinance a €3.2bn (£ syndicated loan by the end of the year as well as its ongoing negotiations with HSBC in London.
Earlier this month Metrovacesa agreed a new contract with an extended payment schedule with Legal & General over a £228m outstanding payment owed on its purchase of the Walbrook Square site in the City of London.
It paid L&G £42m and agreed to pay the remainder in quarterly amounts but it is understood that the majority of the money is only due to be paid in the later stages of the new payment schedule. The original payment deadline was in May this year,