Hotel San Antonio has announced that the banks, as expected, had given it full financing to cover both the redemption of the 7.5% bonds due to mature in May 2012 as well as to carry out further improvements in the hotel, thus showing complete confidence in the company.

Last month, the hotel had said that was collaborating with its bankers to secure the required financing to cover redemptions of its 7.5% bonds on May 30, 2012, and its proposals have received favourable consideration.

In a statement on May 25, the company had said that as at the date of the audited financial statements for the year ended December 31, 2009, it had not set up a Capital Reserve Fund to cover the redemption of its 7.5% bonds.

This had occurred as the company did not generate available free cash flows as defined by the Offering Memorandum of April 17.

It had stressed that the bonds, with a nominal value of €5,823,433, had been issued in its own name and that the company's net assets gross of the bonds in issue stood at €13,571,650, thus substantially in excess of the value of the bonds.