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Spain's Colonial may set up contribution vehicle for illiquid assets
Struggling Spanish quoted group Inmobiliaria Colonial, for the last year in the hands of creditor banks, is considering setting up a new firm into which to spin off problem assets, particularly land for which the market has virtually dried up. Media reports say the firm would be set up together with private and saving banks which now control Colonial. Each firm contributing assets would receive shares in proportion to the value, although Colonial would be put into the position of first among equals. The idea of a contribution fund is gaining ground in Europe. Colonial has reduced its debt level by 10% to e6.57bn, and just sold the principle trophy asset of its Riofisa subsidiary, Principe Pio shopping. .( Full story to be published in PIE 128 on 6 July)