Monday, September 15, 2008
European woes are almost insignificant
Inmobiliaria Colonial SA, once Spain's second-largest real-estate company, fell to a five-year low after agreeing to a 7 billion-euro ($10 billion) debt reorganization. Colonial, which had a total 9 billion euros of debt as of the end of June, will sell stakes in French unit Societe Fonciere Lyonnaise SA and builder Fomento de Construcciones y Contratas SA, and all of Rofisa SA, it said in a statement today. As part of the agreement with lenders including Goldman Sachs Group Inc., the Barcelona-based company will also sell 1.4 billion euros of bonds convertible into shares at a discounted stock price.