The Strategic Companies Solvency Support Fund, managed by the Sociedad Estatal de Participaciones Industriales (SEPI), has approved the request for the rescue of the company Duro Felguera for an amount of 120 million euros, which is still it must be authorized by the Council of Ministers.
In a statement sent to the National Securities Market Commission (CNMV), Duro Felguera pointed out that the Fund Management Council has agreed to submit the documents for the approval of the bodies of the companies that make up the industrial and capital goods group “Temporary Public Financial Support Agreement” and “Management Agreement with the Company”. According to the company, it is “a condition prior to the estimated resolution of the request for temporary public support” for 120 million euros. Once the documents are approved by the group’s corporate bodies, “the operation will be submitted to the Council of Ministers for authorization,” the statement added.
Duro Felgura’s request to the rescue fund, processed last August, is specified in a 70 million equity loan of euros, another ordinary 20 million and the subscription by SEPI of a capital increase of 30 million for their temporary entry into the capital of the company. As a preliminary step before reaching the Council of Ministers, the documents transferred by the Fund for Support to the Solvency of Strategic Companies must be approved by Duro Felguera SA, DF Monpresa, DF Operations and Assemblies, DFOM Biomasa Huelva, Duro Felguera CaldererÃa Pesada and Felguera IHI.
This announcement comes after the Asturian multinational has reached a agreement with the creditor bank, which requested the refinancing of 85 million euros of debt. The Asturian group, which lost 171.6 million euros last year, compared to the profit of 1.4 million the previous year, insisted last Monday that it could be in “serious difficulties to stay in operation” if it did not receive the public rescue. Duro Felguera, with more than 150 years of history and projects executed in countries around the world, reduced its workforce over the past year from 1,546 to 1,173 employees and closed the year with a gross debt of 95 , 3 million euros and a negative net worth of 147 million euros.
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