MADRID, July 15 Troubled Spanish property
company Martinsa Fadesa MFAD.MC is in talks with unions to cut
almost a quarter of its 880-strong workforce, a union source
"Martinsa Fadesa's board is still in talks with union
representatives from the construction sector. The layoffs could
affect some 200 people," the source said.
On Monday, Martinsa Fadesa said it would file for
administration after it failed to raise funds and meet debt
payments, marking one of the biggest corporate failures in
In June, a Martinsa Fadesa official said the company was
negotiating to reduce staff due to the worsening property
crisis, but did not provide figures for the planned layoffs.
Martinsa Fadesa, with 5.4 billion euros ($8.62 billion) of
debt, said it requested administration after its failure last
week to raise a 150 million euro loan -- a requisite of 4
billion euro refinancing agreement earlier this year.
The Spanish property market has slumped this year after a
decade-long boom during which house prices tripled thanks to
cheap credit and rampant construction.
(Reporting by Clara Vilar; Editing by Paul Bolding)