San José Enters Default & Requests Aid to Avoid Liquidation

18/03/2014 – El Cofidencial

Current talk of the town is a difficult situation of Grupo San José chaired by Jacinto Rey, facing maturity of a €2.400 million debt for last few weeks. After not having met requirements, the businessman negotiates with lenders (…) to waiver a syndicated loan granted to him in 2009. (…).

The company has not paid interest commission of €6.4 million before January 21st this year. The deadline was set by 85% of the lenders. (…).

Moreover, apart from the €81.9 million original payment amount, San José will have to add the not-fulfilled obligations from 2013 that amass the debt up to €139.14 million, deadlined in April. (…).

The Group came to an agreement with Banco Popular that had delayed payment of €77 million last year. The next and the last step will be to redeem €1.181,4 million that becomes mature in 2015, up to €1.320 million in syndicated loan. The debt expands to €2.400 million if several marketing and financial discount lines (€244 million), confirming process cost (€105 million), construction guarantee (€510 million) and other liquidity lines (€222 million) are taken under consideration.

Except for Popular, other lenders of the Group San José are: Sabadell, Novagalicia and Barclays. (…).

The only hope for the company right now is the new insolvency law that allows delay of payment if at least half of the lenders accept the proposal. However, the banks could demand guarantees and seize the majority of the capital (60%), now in hands of Jacinto Rey. (…).

At the end of 2013, San José recorded a €155.2 million loss, by 60% greater than in 2012 and four times bigger than the 2011 figures.

 

 

Original article: El Confidencial (Agustín Marco)

Translation: AURA REE

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