Miss Spain goes bust in bankruptcy boom

The organizers of the annual Miss Spain beauty contest have joined the growing list of Spanish firms forced to close as a result of the economic crisis.

Miss Spain goes bust in bankruptcy boom
The winner of the 2007 Miss Spain Contest Natalia Zabala: the future of the compeition is now uncertain. Photo: Alfredo Estrella/AFP

Certamen Miss Espana SL, was one of 2,854 firms that shut up shop in Spain in the first three months of 2013.

The last edition of the Miss Spain competition was held in 2011 with the Catalan Andrea Husigen taking the crown but the future of the beauty pageant remains unclear.

Among the other Spanish firms filing for insolvency was also Spanish property firm Reyal Urbis. The builder was drowning under a debt pile of over €3.6 billion euros, in the second-biggest bankruptcy in Spanish history after fellow property firm Martinsa Fadesa went bust in 2008.

The number of companies which filed for bankruptcy in Spain in the first quarter of 2013 was 22.8 percent up on the same period in 2012, the the National Statistics Institute said on Wednesday.

Bankruptcies were also up 10.4 percent rise from the previous quarter, the stats body announced.

One quarter of the firms that filed for bankruptcy came from the construction sector, 17.1 percent came from the commercial sector and 16.3 percent were from the industry and energy sector, the INE added in a statement.

Spain is still struggling to overcome the aftermath of a decade-long property bubble that imploded in 2008.

Prime Minister Mariano Rajoy's conservative government expects the Spanish economy, which contracted 1.4 percent in 2012, will shrink by 1.3 percent this year before posting modest growth of 0.5 percent in 2014.

The downturn has caused demand to fall and banks, facing a rising tide of bad loans and regulations, to tighten lending.

Spain recorded 8,726 bankruptcies in 2012, a 27.1 percent increase over the previous year.

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Breaking: Banco Madrid files for bankruptcy

Banco Madrid is to enter insolvency proceedings, announced administrators on Monday, just days after the striken bank was taken over by Banco de EspaƱa.

Breaking: Banco Madrid files for bankruptcy
Photo: Gerard Julien/AFP

Banco Madrid will enter insolvency proceedings and suspend all activity, after significant deposit withdrawals, the country's central bank announced in a statement on Monday. 

The news came days after the entire board of Banco Madrid resigned and handed management over to the Bank of Spain on Thursday, March 12th. 

The change of management came after the central bank launched an investigation into accounts at the lender for suspected money laundering activities. 

This came about after legal action was taken by US law enforcement authorites on Tuesday against the parent company of Banco Madrid, Banca Privada de Andorra (BPA). 

"This decision comes in response to the sharp deterioration of Banco Madrid's financial situation as a consequence of the important withdrawals from client funds after the latest events which have affected its capacity to meet its obligations," Banco de España said in a statement, released on Monday morning. 

Deposits were protected by the Spanish deposit guarantee fund of up to €100,000 ($105,350) per client, the bank said.