Husa Negotiates With Investors To Overcome Insolvency

29/12/2014 – Expansión

The Husa hotel chain is holding talks with several investors to try to get a partner to inject liquidity and lift it out of the bankruptcy proceedings to which it has been subjected since February, according to Europa Press’s inside sources linked to the proceedings.

Predicted by the incumbent judge of the Commercial Court No. 3 of Barcelona, José María Fernández Seijo, the regular phase of the bankruptcy proceeding will be complete in early January, after which the company must submit an agreement proposal with its creditors.

The Hostelería Unida insolvency proceeding — which brings together a great number of companies from the Husa group — was announced on February 11th, and nine more companies have been added since then.

The group has sold some hotels or transferred profitable business units, including the iconic Hotel Palace in Barcelona, which was transferred to owners who have taken over the management of the establishment and all the employees. The group has also reduced its workforce of about 500 employees to about 200 currently.

According to the report of the insolvency administration, submitted in late October when there were still only six companies in state of insolvency, the group’s negative shareholders’ equity amounted to € 153 million — the difference between its € 68.5 million of consolidated assets and 221.8 of accumulated total liabilities. Administrators had, nonetheless, already predicted that this figure could exceed 200 million due to the likelihood of adding other companies into the proceedings.

Of the group’s debt of 221.8 million euros, 40.2% correspond to public credit–primarily from the Tax Agency and Social Security Servicе; 26.4% to financial creditors–the main ones being CaixaBank and Banco Sabadell; and the remaining 31.3% to general creditors.

Hostelería Unida accounts for the greater chunk of the negative stockholders’ equity – 115.7 million euros, as it has assets worth only 34.7 million euros and liabilities amounting to 150.4 million.

Original article: Expansión (by Europa Press)

Translation: Aura REE