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Sun May 09 2021

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Isolux Corsan files for bankruptcy

5 Jul 17 The directors of Spanish construction and engineering business Isolux Corsán have agreed to apply for bankruptcy proceedings for seven companies with a total of 1,992 employees.

Six offers of acquisition have already been received for parts of the business.

The president and the six board members have now submitted their resignations, in order to facilitate the administration of the company. A shareholders meeting, held immediately after the board meeting, has approved the appointment of new directors.

The company had filed for bankruptcy protection at the end of March under the Spanish Insolvency Act (link opens in new tab).

The bankruptcy proceedings affects: Isolux Corsán Group, Corsán-Corviam Construcción, Isolux Ingeniería, GIC Concesiones, Isolux Corsán Servicios, Isolux Corsán Inmobiliaria and Isolux Energy Investments. These companies have a workforce of 1,992, of which 1,108 are based in Spain, including 160 expatriates.

These companies have accumulated a debt with suppliers of €405m (£355m). The total financial debt on balance sheet of the group - including those companies not included under the Spanish Insolvency Act filing - at the end of April was €1.27bn (£1.11bn) euros, of which €557m (£489m) are associated with project financing.

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The group management has been working on three approaches since filing the communication under the Spanish Insolvency Act at the end of March: the design of a viability plan, the search for an investor for the engineering and construction business and the implementation of solutions to facilitate the continuity of most of the ongoing projects.

The management of the group, the main shareholders and advisors have prepared the restructuring process with the aims of maintaining as many jobs as possible, limiting the risks deriving from guarantees in place and facilitating the continuity of the company through projects that are viable.

In recent days, six offers of acquisition of diverse units have been received. Several of these propose the absorption not only of the personnel carrying out the works, but also of a significant number of workers of corporate areas.

It will be up to the new directors, the bankruptcy administrator and a judge to evaluate the offers.

The company said that it is up to date on the payroll and Social Security and Personal Income Tax obligations.

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