The real estate group Tremona has declared itself insolvent, unable to cope with debts of around €900 million. It is the second largest company, after Martinsa-Fadesa, to follow this route.
It is also thought that about a dozen subsidiaries of Tremona, including TRH hotels, will also file for insolvency and bring the total debt up to around €1,200 million.
Tremona was launched in 1993 and an expansion programme led it to set up operations in Poland, Hungary, the Czech Republic and Morocco. In 2006, the group posted net profits of €36.5 million, but by July 31st 2007 they had debts of €712.3 million.
The group adopted measures to alleviate the problem but had to abandon them last December due to the instability of the financial market. They now join an ever-increasing list of failed construction and real estate companies such as Martinsa-Fadesa, Llanera, SEOP, Grupo Lábaro, Cosmani, Promodico, Urazca, Grupo Drac and Restaura.