Spain's Afirma, former Astroc, close to e1.4bn refinancing

The Valencia-based listed real estate group Afirma, formerly Astroc Mediterraneo, aims to conclude refinancing of its debt totalling around e1.4bn in syndicated and other bank loans no later than the end of July. In a filing to the Spanish stock exchange, it said it already signed refinancing with syndicated loan creditors. The group, a housing and industrial property developer, has been struggling with debts amassed by prior management. Founder Enrique Banuelos floated Astroc on the stock exchange in May 2006 at e6.40 per share and it rocketed almost 12 times in value by early 2007 before crashing after doubts over its business model and management. Astroc was the most extreme paradigm of the white hot Spanish development market early in the decade, set off originally by legislation change in 1994. (Full story to be published in PFE 130 on Monday 20 July)