Ten months later, we are lucky. Fundesem has earned the right and the possibility of a promising future.with exciting new and exciting goals.
We will start this new path with the support and hand of the European University. In our emblematic building on Calle Deportistas Hermanos Torres, the Higher Education, University and Business Area will be created. As with all major Spanish business schools, there has been an alliance with a major university.
Some unaware of reality he called it “titleitis”Some of us realize that when leading business schools do this, there is a reason.
It has taken Fundesem many years to reach this milestone, others have tried before but failed, and this has meant an additional accumulation of disproportionate and unsustainable spending that we inherited through heavily damaged financing and hard-to-take commitments. lonely road
From now on, I only want to talk about the future, but right now I have to value the past.
On July 1, 2022, a reflection describing what had happened since I entered Fundesem in April 2019, ten months ago, was published on the same medium. The aim was to make İvace, the owner of the building where Fundesem is located, think: The decision to get Fundesem out of there was not the best option. and therefore change its decision in support of the Fundesem-Universidad Europea agreement. And the goal was none other than a tremendous impact for our city and the province of Alicante.
There is the unexpected. Of course, these were a set of conditions that came together in June when Ivace agreed to terminate the lease and claim all outstanding debt.
Objective data confirms and illustrates the story. My current four-year presidency began in April 2019. Due to non-payment of rent in Fundesem just before and in the previous years, a new lease agreement was signed with Ivace extending until 2024, with an annual income of 95,125 euros plus 60,000 euros per year to pay off accumulated debt, a total of 180,000 euros per annual payment. From then on, sums were paid to Ivace until it reached the figure of 145,785 euros.
Saving complex situations. In March 2020, the covid-19 pandemic devastated our country (and the entire world). By investing in technology and persuading teachers and students to continue the course, the Fundesem team managed to keep its activity online, practically not suspending it. It was adapted over the following months with almost no resources, but with great dedication from the team.
At that time of covid, we asked Ivace to temporarily forgive the debt due to the closure of Fundesem and also the rent reduction due to the covid situation, but these requests were denied.
Solutions are valued when there is interest. In 2021, we looked for options and a definitive strategic solution for Fundesem, and the European University appeared in our path.
Discussions began, culminating in the signing of a contract on July 30, 2021.
On October 26, 2021, the Board of Trustees of Fundesem unanimously decided to approve a new business plan that includes an agreement with Universidad Europea and continues to spend time with the implementation of the necessary processes.
Obstacles can be resolved if there is agreement. Alicante City Council approved the agreement with the memorandum of the Executive Board dated 22 June 2022, thus allowing its implementation.
However, when we got our hands on the future-proof solution, something unexpected happened. Just a few days after the signing of the municipal contract dated 29 June 2022, İvace decided to terminate the lease agreement with Fundesem and demand the entire debt. Upon this news reflected in the press, we convened the Board of Trustees of the Foundation on July 6, 2022. In it, I proposed (and was unanimously accepted) to initiate the bankruptcy process. The goal was clear: to paralyze the action initiated by Ivace and save Fundesem.
With maximum speed, voluntary bankruptcy was filed in Alicante Commercial Courts on 13 July 2022.
In this case, Fundesem received two notifications as expected: They fell like a pitcher of cold water.
On July 13, 2022, Universidad Europea informs us that it has terminated the contract signed a year ago. The decision in question was understandably based on the agreement accepted by Ivace that I mentioned earlier, how could it have been otherwise?
On July 14, 2022, Ivace officially announced the termination of the lease and the total debt claim. (more than one and a half million euros accumulated over ten years).
These were the worst moments of these ten months. The feeling of emptiness and loneliness was very present in all of us.
Also in July, all Fundesem staff were painfully laid off, cutting-edge classes and programs were completed, and the remaining students were offered continuity at the various institutions that helped us at that time.
Nevertheless, with the support of the Governing Council and the continued work of our managing director, Ismael Navarro, I was convinced and Violeta Peregrina (in charge of Fundasem’s economics department) We were able to reverse the situation.
At the end of July 2022, I met with the bankruptcy administrator appointed by the court. Basque throughout. Based on the huge debt, his first impression was that Fundesem needed to be liquidated. We said that Fundesem is not an ordinary institution, it is worth fighting to save it.
In those last days of July, I asked the European University and the bankruptcy administration to rest and think, and at the end of August we were invited to new meetings. All this was to find a solution that would provide continuity to Fundesem.
It was. The European University in Valencia, led by its rector, backed inside that Fundesem was worth it. Although he had other alternatives to start his career in Alicante, he still chose Fundesem. In the end, we were able to sign a new agreement with Fundesem directly contributing one and a half million Euros to pay for the competition.
This meant that Fundesem’s creditors could collect 55% of their credit rights if the bankruptcy continued. In addition to a payment of around €400,000 per year for the next ten years and the contribution of all the know-how to support our business school. In return, we would manage specific fields for your university education in Health Sciences. and they would trust Fundesem and its corporate network.
The bankruptcy executive returned from the summer with renewed vigor. He appropriated Fundesem’s cause and bet on his salvation. His and his team’s work also played a key role.
We received almost unanimous support for the agreement submitted by the creditors who voted in the competition for the future proposal of Fundesem.
On November 16, 2022, the bankruptcy administrator and later the judge considered the Fundesem bankruptcy to be accidental and not guilty.
On 23 November 2022, the court accepted the settlement offer by order, in which 55% of the Fundesem loan was offered. In that order, it made clear what our purpose is and the role of Fundesem. A decision to frame and a lesson for all of us. He said of the deal:
«…a source of numerous benefits for the province of Alicante and especially for its productive fabric».
On February 8, 2023, the Ivace Board of Directors approved to participate in the Fundesem deal proposal.
On March 10, 2023, at the general assembly of Consell, the acceptance of debt forgiveness with Fundesem was unanimously accepted.
Finally, a few days ago, on April 26, 2023, a decision was made that Fundesem was completely out of bankruptcy.
Last Friday, 28 April 2023, the last hurdle was overcome, a ten-year lease agreement was signed between Ivacey Fundesem, adapting it to the market despite having an annual income of 288,000 Euros (the previous one 95,000 Euros plus 60,000 debts).
And Fundesem comes out of the competition fully empowered. To provide clear economic figures before the competition Fundesem’s 2.5 million euro debt and contract with Ivace was over.. Today Fundesem has zero debt, a ten-year lease and an agreement with the European University that will allow it to receive around 4m euros in the same period.
Point out that Fundesem is the sole tenant of the building and the Board of Trustees is the dominant body as it has been until now.
Throughout this journey, we were convinced that Fundesem was worth it, despite the odds against us. I had the support of the Board of Trustees, patrons, suppliers, teachers and students. Always with the strength, support and tireless work of the European University.
In addition, Alicante will have a private university to complement the education offered by our excellent public universities. All of them are necessary, and each will play its part. Alicante was the only significant provincial capital without a private university. Now, thanks to Fundesem, he already has it, and what’s more, A university with more than 54% international students and very connected with business and professional activities.
Fundesem, which will start its full education as of October, will start its education by being renewed with the desire and strength to add value to more than 60,000 graduates.
Based on the agreement with Universidad Europea, investment will be made for the improvement and structural refurbishment of our magnificent building. Studies have already been approved and will begin shortly. Further investment in equipment and digitization will continue.
With full security and everyone’s support, Fundesem will find its new space. We will all be proud of our city’s business school again. And it will be compatible with other existing and upcoming initiatives under construction on the market. Each will find out how to differentiate themselves.
Honestly, it was worth the effort.
Actually, we are not some, we are all and all of us.
Thank you from the bottom of my heart because I truly received unconditional support.