In Alicante, an important cross‑border move unfolds as Fundesem seeks a pivotal transformation. A proposed agreement from European University would infuse the school with 1,250,000 euros aimed at stabilizing debt and securing a pathway forward. The funds would directly address outstanding liabilities, allowing current managers to cover roughly half of bankruptcy loans totaling about 2.5 million euros and reduce the remaining obligation. The contribution would be disbursed from abroad, with annual disbursements of up to 400,000 euros from the European University to the Alicante foundation. In return, Fundesem would gain access to facilities and a range of services, while linking its brand with the European University, which would continue to offer postgraduate education in business adjacent programs.
Ultimately, the initial payment would align with an agreed maturity date that both institutions had established prior to the summer. The Alicante business school paused activity when it elected to pursue voluntary restructuring to protect creditors from disruption.
Fundesem filed for bankruptcy and European University withdrew from the deal
A decision by the Ministry of Sustainable Economy, following an ultimatum, forewarned the center about its future if Ivace did not wish to terminate the lease on the autonomously owned building at Deportistas Hermanos Torres street. This decision took into account the accumulated unpaid rent.
The European University’s generous offer carries key conditions. The private center must secure approval from both authorities involved. The Alicante Town Hall has indicated it supports continuity for Fundesem by transferring the land on which the building stands, and the party responsible for construction, emptyis, oversees the building itself.
The arrangement would extend the lease, currently set to expire in 2024, for at least ten more years, and would accept the business school’s discount on overdue debt.
Additionally, the private university seeks changes to the charter and governance of the foundation that oversees Fundesem, aiming to strengthen professional oversight and daily management.
Under the proposal, the European University would hold three seats on the five‑member board of directors, preserving a strong voice in governance. The board would remain the highest governing body, with two positions reserved for key local leaders or entrepreneurs selected by the trustee council.
When the private center seeks a larger role in day‑to‑day operations, the governing council would assume control of routine decisions. The European University would claim three of the five seats, while the appointment of the minister and vice president on the Fundesem side would stay with the trustee board, chosen from prominent provincial figures.
In return, the package includes a €12 million investment that covers the initial contribution, ongoing annual payments to Fundesem, building adaptations, and the technology needed to deliver the offered degrees.
The proposal envisions gradual improvements in Fundesem’s effectiveness in concert with the European University’s management. By the 2027/28 academic year, the plan targets close to 300 students, with revenue growth anticipated from annual agreements and training totalling €2.9 million, and EBITDA around €360,000 annually. A net result near €315,000 for the Alicante business school is projected, with cumulative cash flow approaching €770,000 in the period.
If the board approves the plan this week, the next hurdle will be negotiations with creditors who must sign off on the plan and approve the proposed debt reduction. Of the €2.5 million in debt, about €1.656 million is Ivace’s share, but other creditors include Sabadell, suppliers, the Tax Office, and Social Security.