total war. relationship between Rubiraltas, owners and creditor funds of Celsa ironworks, in the worst case. After factories last Friday requested a change of position from creditors and requested a wave of support from the governments of Catalonia, Cantabria, Euskadi and Galicia, UGT, CCOO and Catalan employers Foment del Treball, Deutsche Bank, Goldman Sachs, Senior Vice President and Cross Ocean, “The economic interests of the Rubiralta family are the only obstacle From SEPI to a ransom”, encrypted 550 million and for this all creditors must be approved before 30 June.
The reaction of the company did not take long, reminding that creditor funds bought the bank. Up to 80% discount on corporate debt and up to 20% discount on senior debt in the case of convertibles and “they never financed the company and were not interested in its strategic plan”. Contrary to what these funds said in a statement, they “reiterate their current and future commitment to the viability of Celsa and its industrial project.” They also reject “desire to industrially relocate the company’s decision-making center or move abroad.”
In the opinion of the steel company, the funding offer “ Extraction and expropriation of the company value with an annual return of 80%will be supported by public assistance and at the expense of all the company’s stakeholders (workers, suppliers, customers, communities…) at the expense of its industrial activity and investments necessary for the energy transition.” It goes through the signing of a new financial instrument that includes the establishment of a holding company located in Luxembourg; and formalized with a second company owned by the funds, as well as a tax and commercial center in Luxembourg”.
These funds, which own 90% of the company’s large convertible debt, “fully acknowledge Celsa’s role as an employer and contributor to regional economies and want this work to continue.” As such, they add, they are “actively, jointly, seeking a fair deal that reduces Celsa’s debt.” The only point of contention, according to creditors, is how much the Rubiralta family benefited from it. of this agreement at the expense of the company’s creditors. The company initially proposed that after lenders donated €1.2 billion of debt (used to help start and grow the business), the Rubiralta family would retain 100% control of the company and seize 100% of the value above the restructured debt.
Creditors say they are willing to accept the Rubiralta family’s request to retain control to facilitate a settlement with SEPI. Therefore, “the only difference between the positions of the company and the creditors is distribution of any available value When SEPI financing and restructured debt are repaid. This does not affect SEPI funding or the company.”
Both the company and its creditors offered a distribution of this value and left their initial offer. However, creditors continue to believe that the proposed distribution of the company’s value is “unfair, disproportionate and completely inconsistent with all the principles set out in corporate finance in general, as creditors are asked to give up more than €1,000 million from Celsa. The Rubiralta family (who contributed only €50 million to the company)” indebted to them without any substantial and real effort”.