MADRID, June 21 (Reuters) - Talks between Spanish real estate company Reyal Urbis and its lenders have broken down, leaving the company just one step away from full liquidation, a source with knowledge of the talks said on Wednesday.
Real Urbis has been in bankruptcy proceedings since 2013 and executives at the company have been in talks with its creditors in a last ditch attempt to avoid liquidation, which is likely to be triggered after they failed to get a majority of lenders on board for an agreement.
The company had proposed to its lenders - which include the Spanish "bad bank" Sareb, the budget ministry and Santander - a debt "haircut" of 88 to 93 percent on a 2.28 billion euro ($2.54 billion) debt pile.
Reyal Urbis was not immediately available for comment. ($1 = 0.8973 euros) (Reporting by Rodrigo de Miguel, Writing by Paul Day, Editing by Sarah White)