26/06/2014 – El Confidencial
George Soros laid his cards on the table. To help Esther Koplowitz to avoid the implementation from the side of her lenders, the US magnate offers a €1.5 billion fresh capital injection in FCC and B-1998.
The capital enlargement for FCC will amount to €1.35 billion with refinancing tranche interest rate of between 11 and 16%. It is very high as it almost quadriples current differentials. The company is unable to pay them.
On the other hand, the equity that Soros is going to pump into B-1998, family office of the Koplowitz controlling 50.1% of FCC, will help the firm to face its €1 billion indebtness.
FCC stopped returning dividents without which Esther Koplowitz will not manage to meet requirements established by BBVA and Bankia (the main lenders).
The only drawback of Soros´s offer is the demand of a 40% discount on FCC´s shares value. Moreover, the investor wants a cut in debt from the creditors justified by the company´s being the FVC.
The proposal is so confrontational that at first both the family and the banks rejected it. However, the situation of the firm is too tough to give the talks up. If B-1998 does not find a new partner before July 31st, BBVA and Bankia will take control over the builder.
Original article: El Confidencial (by Agustín Marco)
Translation: AURA REE