Esther Koplowitz and her lenders are determined to negotiate the sale of a part of FCC´s €1 billion debt to George Soros in extremis. With the operation, the businesswoman seeks a way out to avoid losing control over the construction firm (she has a 51% stake in it) and allowing the banks to execute the warranties.
Ms Koplowitz, the lenders and the investor were on the treshold of coming to an agreement but in the last moment it was lost due to discrepancy in the parties´ expectations. However, the deadline for making a decision on the debt refinancing concluded yesterday.
The talks will continue with hope of reaching any agreement by Monday.
What they meshed almost for sure is that Soros could buy Dominium, one of Koplowitz´s firms, and perhaps inject fresh capital by purchase of subordinate bonds issued by B-1998 (89% of the stake belongs to the businesswoman, allowing her to hold 50.1% in FCC).
The other option constitutes B-1998´s capital enlargement through amortization of €1.3 billion debt of FCC which is convertible into shares. With this move, Mr Soros could amplify his stake in the builder (currently he holds 3%).
However, performing the latter is much more complicated as its requires an agreement with Bankia and BBVA´s syndicate. Probably, such may not be reached before September.
U.S. Guggenheim Partners has also been interested in refinancing FCC´s indebtness but the negotiation exclusivity contract with Soros effectively kept the investment fund away.