Benidorm seeks bailout after costly legal loss over real estate

Benidorm’s debt problem stems from the Spanish real estate boom of the early 2000s, when investors poured money into beachfront high-rises. — Pixabay

One of Europe’s most famous beach resorts is scrambling to avoid insolvency after it was ordered to pay €350mil (RM1.608bil) in compensation over a real estate deal gone awry.

Benidorm – the Spanish city widely considered the birthplace of package tours – is now seeking a government bailout to help make the payment that’s more than double its annual budget.