Barcelona Project's, the management company of the Fairmont Rey Juan Carlos I hotel in Barcelona, has filed for bankruptcy in the courts of the Catalan capital with debts of around 150 million euros and, if certain contingent liabilities are added, it reaches 160 million . The company hopes to reach an agreement with creditors, especially banks, to approve an agreement and move forward.
The hotel is operated by the international chain Fairmont. Barcelona Project's has a municipal concession that expires in almost 20 years. But the bulky debt, with the difficulties derived from the two very hard years -with the pandemic and the restrictions, first, and Russia's war in Ukraine, later-, caused high treasury tensions. Last March, the company filed a pre-bankruptcy with creditors and, in this context, the sale of the company was negotiated. However, this attempt was unsuccessful.
Now, the company, advised by Cuatrecasas, wants to take advantage of the possibilities of the new regulatory framework in force since Monday - the reform of the consolidated text of the bankruptcy law - to propose a payment plan very soon and overcome the contest.
The hotel, operated by Fairmont, has about 400 workers and operates normally. However, the contest entails an uncertainty in the fact that the Barcelona City Council has not shown a tendency to extend the concession until now, as requested by the manager.