Bloomberg News

Sacyr’s Banks Threaten Execution of Guarantees, Expansion Says

December 20, 2011

Dec. 20 (Bloomberg) -- Sacyr Vallehermoso SA’s creditors are demanding it sell at least a 10 percent stake in YPF SA Repsol, with 15 percent of the banks being in favor of execution of the guarantees on the loan Sacyr took to buy its 20 percent stake in the Spanish oil company, Expansion reported, without citing sources.

One of the Sacyr board members proposed threatening the creditor banks with a pre-bankruptcy filing which would prevent execution of guarantees, Expansion reported. The Sacyr board faces potential lawsuits for failure in its fiduciary duty should it sell the Repsol stake at a disadvantageous price, the newspaper said.

--Editor: Tim Farrand

To contact the reporter on this story: Angeline Benoit in Madrid at abenoit4@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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