Fundesem in Alicante moves into voluntary bankruptcy as leadership pursues debt reduction
In Alicante, Fundesem, the business school established and managed by a limited liability company, has received a formal acknowledgment of its voluntary bankruptcy request. This marks a turning point for the current leadership, led by Cayetano Sánchez Butrón, who aim to align with creditors and avert a potential demand that could force a decisive cessation of executive powers. The path chosen is one of orderly restructuring, not a collapse, with the team seeking a plan that could shield the school from insolvency while preserving its mission.
From this moment, the school’s management will negotiate to substantially reduce the outstanding debt. The strategy involves trimming liabilities and renegotiating terms, while ensuring every step complies with bankruptcy regulations. A PKF Bankruptcy Certificate has been issued, appointing a Bilbao-based firm as the bankruptcy administrator. The administrator has five days to decide whether to accept the assignment and oversee the process.
Current liabilities at Fundesem are reported to be around 2.5 million euros, with approximately 1.65 million owed to the Valencia Institute for Business Competitiveness Ivace due to rental delays. The school occupies a building on Deportistas Hermanos Torres street in Alicante. That facility was built by the district administration in the early 1990s on municipal land to house the training center and previously served as the headquarters for Impiva.
Ivace ends its contract and demands repayment of 1.6 million euros
Fundesem’s decision to pursue bankruptcy follows Ivace’s board approval on 29 June to terminate the lease and pursue the full outstanding debt. The center has proposed a viability plan for overdue payments through a potential agreement with the European University, which would see some facilities transferred to the partnership. At the same time, pressure from local business circles and Alicante City Council prompted top officials to present a path forward. The council and minister pushed for a fresh proposal, while Generalitat demanded immediate payment of a substantial portion of the debt, roughly 600,000 euros.
A view from the meeting with Alicante’s mayor, the business minister, and other municipal leaders illustrates the concern over the center’s future. The European University subsequently withdrew from its October agreement due to the inability to begin the upcoming academic year. Ivace proceeded with contract termination, transferring the matter to the competition referee to adjudicate the remaining disputes.
Fundesem’s governing council has not abandoned its ambition to sustain the school. The leadership intends to reach a new settlement that could curb liabilities and confirm the school’s continued operation.
Fundesem executives have already begun negotiations with creditors. As of the bankruptcy notice, creditors have a one-month window to report their claims in the official gazette. Discussions with staff focus on confirming either an Employment Regulation Plan for most workers or a temporary ERTE for what remains.
According to Sánchez Butrón, staff reductions could be substantial, with the aim to retain only essential personnel to manage ongoing operations during the restructuring. The plan envisions a cooperative approach with employees to ease their transition, offering a route to unemployment benefits and opportunities elsewhere. Any staff reductions must receive formal approval from the bankruptcy administrator once the process is formally declared.
Fundesem’s difficulties echo the broader effects of the 2008 financial crisis on regional business education, which had been supported by a foundation within the Alicante business community. The rent payments stalled in 2011, and a prior request from Ivace in 2017 led to a debt refinancing agreement in 2019. A new leadership team, including the arrival of Cayetano Sánchez Butrón as president, steered the school through those years. Yet the center’s debt to Ivace grew, particularly influenced by pandemic-related disruptions, which affected enrollment and operating income. The current plan seeks to reverse that trend and secure the school’s long-term viability through careful creditor negotiation and internal restructuring.
The path forward remains cautious and collaborative. The objective is clear: stabilize the school, reduce debt, and preserve the educational services Fundesem provides to Alicante and the broader region. The coming weeks will reveal how creditors respond to the proposed arrangements and whether the school can maintain its place in the local landscape while navigating this challenging financial moment.