Alicante’s Commercial Court No. 3 in Elche set a date for the next creditors meeting concerning New Millennium Sports SL, the distributor of Kelme in Spain, which has faced competition since October of the previous year. The court’s upcoming decision will require those responsible for the company to present a plan within a window that starts now and ends 40 days later, with the decree published in the Official State Bulletin. There is a possibility that the court will grant extensions beyond that period, a move that creditors and company personnel will monitor closely in the coming weeks.
From the outset, the leadership of the firm indicated they aimed to reach an agreement that would secure business continuity. They believed that a viable restructuring would be possible if the debt burden could be reduced. Since the bankruptcy declaration, the company has kept operating from its facilities in Elche Business Park with a workforce of 36 employees, continuing regular activity to preserve operations and preserve jobs.
Efforts have focused on negotiating with various creditors and, in particular, on closing a deal with what are known as preferred creditors to achieve a meaningful reduction in ordinary debt. In the local jargon, this is described as a burdensome agreement that could potentially yield discounts exceeding 60 percent, a scenario that would be highly favorable to the company’s ongoing solvency. The Tax Administration remains a central stakeholder in these negotiations, given its priority status in the debt structure.
The Valencia Institute of Finance IVF is a key creditor in the case, holding a position that complicates the debt landscape. The institute currently estimates a claim of 6.5 million euros. The debt’s classification as secondary in the bailout framework was tied to the remaining minority stake involved in the brand rescue, a maneuver that Generalitat organized during the prior administration. This context underscores the political and fiscal complexity surrounding the restructuring process.
The pandemic era has driven bankruptcy proceedings to record levels in the country
In total, the passive liabilities associated with New Millennium Sports amount to roughly 21 million euros, according to a bankruptcy administrator who relied on a report prepared by Galsan Consultores, Elche. Actives total around 24 million euros, with a significant portion represented by tax credits and other intangible assets that could potentially be realized through strategic settlements and licensing arrangements.
New Millennium Sports SL filed for bankruptcy in October of the previous year after a sharp drop in sales driven by the pandemic. The company saw its annual turnover fall from 12 million euros to 6 million euros, a collapse that triggered the court’s decision and led to the obligation to compensate a former brand licensee in Panama with 3.2 million euros. These developments illustrate the severe financial strain the business faced and the legal steps it took to address them.
Founded in 2008, New Millennium Sports SP and its associated entities were created amid a broader effort to revive Valencian commerce after a period of heavy debt and market disruption. One line of strategy involved the creation of Aguamarga Urban Developments, backed by IVF and regional savings institutions, which acquired land in a salt marsh area to reduce indebtedness. This move came at a high cost to public coffers, as the heirs of the Valencian savings banks later sought guarantees tied to the land’s preservation and reclassification status. The total cost to the treasury was reported as 39 million euros.
On the other side of the restructuring, New Millennium Sports established a separate entity, Tirant, managed by Riva & Gacía with IVF support. The restructuring involved transferring the entire industrial and manufacturing operation to this new company, focusing on the production and distribution of sportswear and footwear. To improve liquidity, the firm secured brand rights, licenses, and international distribution through Xian Xiang Group, which operates Kelme Sports as part of its portfolio. As a result, New Millennium Sports took on exclusive responsibility for distributing the brand in Spain, consolidating control over the domestic market while leveraging international channels for growth. The commentary and context associated with these moves are drawn from industry analyses and financial reviews cited by the lead advisory team and relevant regional authorities. Source: Galsan Consultores, Pedro Algarra; Valencia IVF; regional economic reports.