The largest Spanish corporate default, Martinsa-Fadesa, a Spanish homebuilder, signals potential risks in SME portfolios, Deutsche Bank analysts said.
According to press reports, the company had debt outstanding in excess of Ã4 billion ($6.3 billion), held mostly by Spanish banks. Martinsa-Fadesa took out the Ã4 billion loan in April 2007 to finance a merger. It now owes approximately Ã2.6 billion that is due in September. The firm also has Ã2.5 billion of normal debt to fund operations.