Tubos Reunidos has informed the CNMV that the Board of Directors has acknowledged that, due to the cash flow pressures experienced by the Company in recent months—further aggravated by the undesired suspension of activity at the Amurrio mill—the Company is in a situation of imminent insolvency.
Under these circumstances, and notwithstanding that the Board of Directors has been working over recent months on a viability plan aimed at ensuring the continuity of the Company and its subsidiaries, given that the necessary conditions to guarantee the Company’s viability at present have not yet been secured (particularly in terms of a significant cash inflow), the Board, maintaining the prudent approach that has guided its actions, has been compelled to file for voluntary insolvency proceedings in accordance with Article 6 and related provisions of Royal Legislative Decree 1/2020 of 5 May, approving the revised text of the Spanish Insolvency Law (“TRLC”).
This filing has been submitted today, 4 May, before the competent court in Álava.
The decision to file for voluntary insolvency proceedings—also adopted by the governing bodies of the Company’s subsidiaries—has been taken following appropriate external advice and with the aim of protecting the interests of creditors, employees, suppliers and shareholders of the Company and its subsidiaries.
Tubos Reunidos is a listed company on the Spanish stock exchange with more than 130 years of history and a global leader in specialised niche segments of seamless steel tubular products. The Group operates three production facilities located in Amurrio and Subillabide (Álava), and Valle de Trápaga (Bizkaia).
