Celsa Group, the Spain-based steel product manufacturer with operations in the UK, Poland, Norway and France, is in talks with its creditors and Spanish banks to cover a debt payment due May 4, Spanish financial news website El Confidencial reported Thursday, citing financial sources.
The company has requested a credit line from Banco Santander, CaixaBank, BBVA, Sabadell and Bankia of Eur75 million ($81 million) to meet a Eur35 million payment to holders of Eur1.2 billion worth of debt that is convertible to capital, the report said.
Nobody was available at Celsa to comment Thursday.
A further payment of Eur115 million is due in November, El Confidencial said, with the payments compromised by the impact of COVID-19.
The company is due to meet with creditors in the next few days, the report said, with the aim of rolling over both payments towards the end of 2021 using a force majeure clause in the contracts.
— Gianluca Baratti