A group of creditors of the steel company Celsa The company, which represents about 90% of the company’s debt, submitted to the Barcelona courts this Monday a restructuring plan that, in practice, would mean taking over the company it owned if it continued. Rubiralta family. According to a statement made this Monday by that group of creditors, without naming the investment funds participating in the venture and the court in which the document was presented, the restructuring plan is “a comprehensive solution to Celsa’s financial situation, raising its indebtedness by capitalizing a portion of convertible debt and major debt of 1,291 million. the euro is declining”. According to this plan, this group of creditors will continue to hold a debt of 1,560 million with maturities exceeding five years.
The statement explained that under this plan, creditors are committed to injecting more liquidity into society, maintaining “the company’s operations center in Spain” and “creating employment for the entire group”. According to company sources, who explained that the industry is operating normally, the 5,000 direct jobs are linked to the group in seven production centers in Spain and 15,000 indirect jobs from its suppliers.
The announcement of the restructuring plan coincides with its entry into force on the same Monday. The new bankruptcy law definitively opens the possibility for creditors to present such documents to the courts without implying a bankruptcy or pre-bankruptcy or suspension of payments. According to Celsa sources, the announcement comes amid an “open negotiation between the company and its creditors” to reach the debt restructuring agreement that the Government requested in June. the rescue of the steel company, State Industrial Holding Company (SEPI).
In the midst of these open negotiations, the presentation of the plan in court could be interpreted as: a pressure element by funds. In fact, the funds’ statement hints at difficulties in negotiations in recent years: “It is clear that the company’s shareholders and directors are only concerned with protecting the financial interests of the Rubiralta family and their control over the business, rather than the interests of the company itself, its creditors, and other interest groups,” he says.
Celsa’s main creditors include large mutual funds. Goldman Sachs, Deutsche Bank, Senior Vice President and Cross Ocean (owners of the steel company’s 2,400 million euro debt) among others. “The plan ensures business continuity in the long run by reducing debt below the levels the company has previously recommended. The creditors’ plan offers a fully private equity-guaranteed solution and one that requires no thought or consideration. No funding from SEPI nor the corresponding sacrifice of the Spanish State and the taxpayers.” A solution to the problem of excessive indebtedness faced by one of Spain’s leading and Europe’s most important steel producers, and where creditors call on all interested parties to support the proposal”, given by creditors ends the note.
According to the procedures in the new bankruptcy law, after the presentation of the restructuring plan by the creditors, the judge is required to appoint experts to protect their negotiations with the company.
Source: Informacion
Christina Moncayo is a contributing writer for “Social Bites”. Her focus is on the gaming industry and she provides in-depth coverage of the latest news and trends in the world of gaming.