When the bad bank is created, the real estate sector's problems will worsen because real estate companies will not be able to refinance debts that they have with banks that transfer their assets to Sareb.
This is the main barrier that Reyal Urbis has met. Yesterday the company asked for a bankruptcy reorganization proceeding with creditors in an attempt to buy some time and save his business. Because of sharp share devaluation, it is going through tough times. If he had not made this decision, Reyal could have gone into bankruptcy. At least for now they have four months to renegotiate their debt with the banks, although the work will require a Herculean effort on their part. Banks and real estate companies caused the real estate bubble to expand and burst, and they will be the last ones to pick up the pieces.
