Zaragozana Telnet Smart Networks was once among the leading players in the telecommunications sector in Aragon, with more than 200 employees. After nearly three decades of operation, the company faced severe financial difficulties and ultimately filed for bankruptcy following three years of losses. Reportedly, management pursued a potential investor who could preserve part of the fiber optic manufacturing operation.
The operation was linked to a Barcelona-based fund manager, Endurance Partners, known for reactivating distressed businesses, according to people familiar with the matter.
Commercial Court No. 2 in Zaragoza noted in the Official State Gazette (BOE) on May 5 that the technology company, founded by Manuel Villarig, declared bankruptcy on April 27. Aecarya Bankruptcy and Specialized SLP was named the bankruptcy administrator, with attorney José María Carnicer Pina overseeing the proceedings. The debtor did not seek liquidation of assets, expressing optimism about reaching an agreement with Endurance Partners.
The bankruptcy filing included a request to negotiate employee severance and related protections under an eviction of the workforce (ERE). The company announced mass layoffs affecting 65 of its 155 employees. Production facilities and offices are located in the Centrovía industrial area of La Muela. Reports indicate that talks between the workers’ committee and Telnet management were paused after five meetings.
Frustrated sale to a Chinese buyer
Following judicial authorization, discussions resumed, this time with the bankruptcy administrator taking part. The committee described the development as surprising, noting the appearance of an investor whose identity had not been disclosed. Committee members emphasized that preserving about 90 jobs would be a positive outcome, while acknowledging concerns about conditions for the remaining workforce and the timing of severance payments. They also urged that severance funds be directed to the public treasury through the Pay Guarantee Fund (Fogasa) and that the legal minimum severance structure be respected, given the bankruptcy status.
Layoffs were planned to occur in stages, with twelve months of indicated suspensions and a final phase running through March 31 of the following year. The company had seen a broader collapse in broadband equipment and pole production lines, which ceased operations roughly six months prior. The situation led to broader questions about the viability of the remaining business units and their ability to resume activity.
The sale process had previously been arranged with a Chinese group, Chengdu Datang Communication Cable (CDDC). However, close sources near the company indicated that the deal was reversed due to conditions imposed by the government and the uncertainty created by geopolitical tensions in Ukraine, which affected supply chains and market conditions.