Alicante’s Commercial Court No. 3, based in Elche, convened the next 28 November. creditors meeting of the New Millennium Sports SL, distributor Kelme in Spain, which has been in competition since October last year. A decision that will force those responsible for the company to fulfill their responsibilities deal offer in the coming weeks from must be delivered 40 days before As noted in the BOE’s decree issued this Thursday, there is a risk of seeking an extension from this date or from the court.
In this sense, from the outset, those responsible for the firm stated that their intention was to reach an agreement that would allow their business. continuitybecause they thought that work is applicable, if the debt load decreases. In fact, since the bankruptcy declaration, the company continued to operate normally from the facilities it occupies in Elche Business Park and 36 working personnel.
Thus, efforts focused Negotiating with various creditors In addition to closing a deal with so-called preferred creditors, to achieve a significant reduction in ordinary debt – known in jargon as a burdensome agreement that can mean a discount of more than 60% – Tax Administration.
It will be even more complicated Valencia Institute of Finance (IVF)the company owes 6.5 million As the euro was considered a secondary debt due to the remaining minority participation in the bailout of the brand, which Generalitat organized that day under the PP governments.
in total, passive About New Millennium Sports 21 million euro, bankruptcy manager, according to the report by economist from Galsan Consultores, Elche Pedro Algarra; while active to be valued 24 million, A significant portion is tax credits and other intangible assets.
The firm decided to file for bankruptcy in October last year caused by the drop in sales. Pandemic -which reduced its annual turnover from 12 to 6 million Euros- Decision of the Provincial Court this forced the company to pay 3.2m euros in compensation to a former licensee of the brand in Panama.
New Millennium Sports SL is one of two companies founded in 2008 when Generalitat was launched for the second time. word recoveryoverwhelmed by the enormous debt he was dragged into. Thus, in order to save the brand, the Autonomous Administrator created on the one hand, Aguamarga Urban Developments, Joined by IVF, CAM and Bancaja, which bought some land from the company in the salt marsh of the same name and allowed it to reduce its indebtedness. Yes, at a great cost to the public treasury, as the heirs of the Valencian savings banks – Sabadell and Bankia – demand payment of their guarantees, as the land was preserved and never reclassified, which is what? It cost Consell 39 million €
On the other hand, established New Millennium Sports, through the Tirant fund created by manager Riva & Gacía and IVF. All industrial and manufacturing business was transferred to this company. Sales of sportswear and shoes.
To obtain liquidity, the company acquires brand rights, licenses and international distribution. Chinese Yuan Xiang Group, through the normally operating company Kelme Sports. Thus, New Millennium Sports was solely responsible for the distribution of the brand’s products in Spain.