Spain's Colonial said it is trying to renegotiate the conditions of EUR 1.55 bn in debt the company assumed when it acquired a stake in infrastructure firm Fomento de Construcciones y Contratas (FCC). In a filing with the Spanish stock market regulator CNMV, the debt-laden property company said that FCC's share value had dropped to a level below which creditors could exercise a repayment clause allowing them to recall the long-term debt earlier. However, the company added that it had obtained a temporary waiver from the banks and hoped that it would be allowed to renegotiate the debt terms to reclassify the debt as long-term.
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