Spanish property group Metrovacesa has reached an agreement with 90% of its lenders to postpone debt repayments on its EUR 5.7 bn of debt.

In a statement on Friday to the Spanish stock market regulator CNMV, Spain's third-largest property company said that the agreement with a majority of its lenders is enough to receive approval from a UK court administering the debt reorganization.

The company will pay the interest on its EUR 5.7 bn worth of loans but not the principle as part of a scheme presented to its lenders. Under UK law companies have to reach an agreement with just 75% of creditors whereas in Spain they need backing from 100% of lenders.

Debt repayments on Metrovacesa's rental income business will be delayed for five years, while payments on the land and residential development portfolio will be pushed back by 10 years.

The refinancing plan with a consortium of 40 creditors also envisages the execution of a EUR 1.2 bn capital increase.