Fortress Escapes Unscathed Dismissing 45% of Lico’s Staff

The opportunistic and vulture funds which buy Spanish demolished financial and real estate assets seek high profitability in their investment. (…) Fortress, the fund that took over Geslico, the cash regain subsidary of bank, announced a collective dismisal of the workers (ERE) which is equal to 45% of its staff.

(…), on Friday, Geslico informed its employees that 174 out of 470 workers are to be dismissed by means of contracts termination. Additional 40 have faced temporal suspension (so-called ERTE) (…).

The company decided to cut down on the number of workers before taking control over the old branch of the savings banks. The matter is an essential condition for the purchase of all the holding of Lico Corporation which also includes companies of leasing, renting and consumer financing among others.

For that firm, Fortress reached an agreement with the majority shareholders (BBVA, Banco Sabadell, Mapfre, Ibercaja, Unicaja, CECA, Novagalicia, CatalunyaCaixa and Bankia, among others) and will pay them 220 millions. These companies chose to put the holding on sale to avoid pumping more capital before the outcome´s nosedive and the hole generated by the management deficiency expands.

Source: El Confidencial