Celsa creditors present restructuring plan to court

Creditors of Spanish electric arc furnace-based steelmaking group Celsa submitted a restructuring plan to a court in Barcelona on Monday, Kallanish learns.

According to a statement issued by the creditors, the restructuring plan aims to “provide a comprehensive solution to Celsa´s financial situation, reducing its indebtedness by €1.29 billion [$1.24 billion] through the capitalisation of the convertible debt and part of the jumbo debt”. The proposal also foresees a five-year extension of the maturity date for the remainder of the liabilities, as well as maintaining Celsa´s operations centres in Spain and employment across the entire group.

After months of negotiations over the restructuring of Celsa´s debt of €2.8 billion, the latest action has coincided with the entry into force of Spain’s new bankruptcy law on 26 September. This opens the possibility for creditors to be able to present a plan in court, without this implying an insolvency proceeding or the suspension of payments.

“The plan reduces the debt below the levels previously proposed by the company, thus guaranteeing the continuity of the business in the long term. It offers a solution secured with totally private capital and does not contemplate or require any financing from Spain’s public fund, Sociedad Estatal de Participaciones Industriales (SEPI) and taxpayers,” adds the statement.

The creditors, who represent 90% of the jumbo debt and 89% of the convertible debt, have asked the court to appoint an expert to guarantee the progress of the restructuring plan, which could mean that the investment funds take over 100% ownership of the Rubiralta family-owned steelmaker.

“Celsa Group will continue negotiating with investment funds as it has been doing in recent months,” says the steel company. “The company, which acts with the utmost transparency, is sure that common sense will prevail and a beneficial agreement for all parties will be reached shortly.”

Celsa is the largest private industrial group in Spain, with its main steelmaking activities near Barcelona and in the north of the country. Outside Spain, the group produces steel in France, the UK, Norway and Poland.

Todor Kirkov Bulgaria