May 3 (Reuters) – The Spanish engineering group Duro Felguera has asked Spain for the first 40 million euros of public aid in a package with which to avoid bankruptcy, after having reached a debt restructuring agreement with the main entities banking.
As reported last Saturday, Duro Felguera has agreed with a group of banks, among which are the Spanish Santander, BBVA, CaixaBank, Sabadell and Liberbank a refinancing of syndicated debt for 85 million euros and obtaining credit lines for up to 100 million to cover its viability plan.
Once this agreement has been reached within the deadline of April 30, the Spanish group has requested the fund for strategic companies of the Spanish State Society of Industrial Participations (SEPI) to disburse the first 40 million of public aid out of the total of 120 million approved by the Government of Spain in early March.
As previously reported by Duro Felguera, this first tranche of the state bailout will be broken down into a participative loan of 20 million euros and another ordinary for the same amount.
The financial entities gave their approval to the new scheme after Duro agreed to amortize 7.5 million of debt, as well as convert 25.5 million of the affected liability into a participating loan and another 52 million into convertible bonds, according to the group in a statement to the CNMV.
Regarding the new lines of financing, the banks will grant the engineering group guarantees for 80 million euros with coverage of 70% of the public entity CESCE, having also agreed to negotiate another line of temporary guarantees for 20 million.
On the other hand, Duro Felguera reported in another statement on Saturday that his board of directors approved the dismissal of José María Orihuela Uzal as CEO of the group, who will be replaced by José Jaime Argüelles Álvarez in a decision adopted within the agreements reached with SEPI.
Likewise, the board of Duro Felguera agreed to appoint César Hernández Blanco and Miguel Ángel Santiago Mesa as new external directors by co-option.
(Information from Darío Fernández; edited by Flora Gómez)