From a peak to a slump; this is the way Granada real estate company Ávila Rojas has gone forcing them to suspend payments due to the large debts they have accumulated. INCAR S.A., with their head office in Marbella, has a debt of over €200 million and even thought they have already paid more than €49 million, they have found it very difficult to come up with the rest of it.
The branch INCAR S.A., which was founded at the beginning of the nineties, was very important back then even though currently, the activity in the company is practically non-existent. Because of this, once the creditor sees that the debt is not reducing, he chooses to appeal for suspension of wages, a system which is accompanied by the sale of several properties so as to solve the debt problems.
The aim of this is to avoid embargos and possible auctions according to Alfonso Rantańo, managing director of the organisation.
The value of Ávila Rojas is three times higher than the debt itself therefore they refuse to admit that they have any problems. So the suspension of pay is to guarantee the integrity of the company’s value so that part of it can be used to repay some pending debts and the rest remains in the company thus avoiding the shares being auctioned off or sold at a loss.
Even though Ávila Rojas relies on more than fifteen subsidiaries, this is the first time the real estate company is faced with this sort of situation and Rantańo believes it will also be the last.
