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Fri May 07 2021

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Isolux Corsan files for bankruptcy protection

4 Apr 17 The directors of Isolux Corsán have issued a filing under the Spanish Insolvency Act in order to have time to negotiate an injection of funds.

The filing of the communication under ‘rule 5 bis’ avoids the declaration of bankruptcy.

The company said that the resolution of the board of directors protects the group during the ongoing negotiations but does not affect the maintenance of its activity or its ability to perform operations - particularly regarding the projects initiated in recent months.

“In compliance with the commitments undertaken by Isolux in the said refinancing agreement, the Group is carrying on a divestment plan for all its concession assets and is also in the process of looking for an investor for the EPC business (engineering and construction business),” said the company statement. It has also made a strong adjustment of costs, reorganised the company and launched a business plan in order to promote the project portfolio.

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The issue of the annual accounts has been postponed until the negotiations regarding new financing are closed.

The management team of Isolux Corsán has been negotiating this injection of funds with its main financing parties and shareholders since the end of last year. In December, the first conversion of debt into capital was carried out as a result of a restructuring agreement entered into on July 2016, which was approved by the judicial authorities in October. Upon this conversion, the banks and bondholders of the company became holders of 94.67% of its share capital while the stake of the previous controlling shareholders was diluted to 5.43%.

Isolux Corsán currently employs 5,236 workers, has presence in 35 countries and carries out projects in the areas of energy, transport infrastructure, building and water.
 

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