Spain

Renewable energy group Abengoa SA filed for insolvency late on Monday, after its latest attempt to restructure its debts fell apart, Bloomberg News reported. The parent company of the renewable-energy producer, which is the entity that filed for insolvency, had around 1 billion euros ($1.22 billion) of liabilities in 2019. The group as a whole had 7.9 billion euros in liabilities as of March 31, according to its latest earnings statement.
Read more

The Spanish government is mulling additional economic measures to ease the situation facing thousands of companies badly hit by the COVID-19 pandemic, particularly in the hotel, restaurant, and catering (HORECA) sectors, EURACTIV.com reported. Economy and Digital Transformation Minister Nadia Calviño has stressed that the government is considering the implementation of additional measures to mitigate the heavy impact of the pandemic and to “reinforce the solvency of firms.” Tourism is one of Spain’s key economic drivers.

Read more
Spain’s government is considering debt relief for companies as extended pandemic restrictions and a slow European vaccine rollout tip the economy into another downturn, according to officials, Bloomberg News reported. One proposal would excuse a portion of the debt borrowed through Spain’s state-backed loan guarantee program for companies that stand a good chance of surviving after the pandemic, the officials said. They asked not to be identified because the talks are confidential and no decision has been reached.
Read more

Football club FC Barcelona Barça is on the verge of bankruptcy its total debt right now stands at 1,173 million euros, of which 730 are short-term, El Mundo reported. Nearly 266 million euros owed to banks comes due for the club before June 30 with 90 million of that figured owed to Goldman Sachs. The total wage bill for professional athletes currently stands at 74% of income . It should be remembered that the League regulations significantly penalize the fact of exceeding the 70% limit in the case of footballers.

Read more

A report recently by La Vanguardia says that La Liga giants Barcelona are in debt to the tune of €420m (£375), which must be paid by the end of this year or they could face insolvency, with the report describing the club as having let things spiral out of control, according to EuroWeeklyNews.com. Apparently, there is a straight €480m (£428m) long term debt, repayable over one year, and then another debt of €420m (£375m) in the short term, making a total debt of almost €900m (£803m) at the club.

Read more

Spanish blue-chips including Telefónica, Iberdrola and Seat are positioning themselves for tens of billions of euros in EU coronavirus aid they hope will transform their industries and benefit their bottom lines, the Financial Times reported. Spain expects to receive some €140bn from the €750bn EU coronavirus recovery fund, which leaders approved last week, making Madrid one of the biggest beneficiaries of the programme, along with countries such as Croatia, Bulgaria, Greece, Portugal and Romania.

Read more

Economic activity in Spain and Italy’s services sector has hit a six-month low according to a widely watched business survey, as consumer companies bear the brunt of lockdowns to battle the spread of coronavirus, the Financial Times reported. Italy’s IHS Markit purchasing managers’ index for services fell for the third consecutive month to 39.4 in November, while the Spanish index fell for the fourth consecutive month to 39.5. A reading below the 50 mark indicates that a majority of businesses reported a contraction in activity from the previous month.

Read more

Up to 18.7% of Spanish companies could be insolvent by the end of the year because of the economic impact from the COVID-19 pandemic, with one in 10 of them unviable “zombies”, according to a worst-case scenario published by the Bank of Spain on Tuesday, Reuters reported. Even in the central bank’s most optimistic scenario, the number of insolvent companies would still rise to 14.5% from 10.5% last year.

Read more

Spain on Tuesday ordered banks to comply with a six-month extension of a state-backed loan scheme to June next year, designed to help companies struggling with the impact of the coronavirus pandemic, Reuters reported. Economy minister Nadia Calvino told a news conference bank clients who have no overdue payments can request these loans. Banks should also provide these loans with longer maturities and grace periods if customers ask for them, the minister said.

Read more

Wirecard's insolvency administrator Michael Jaffe on Monday said the payment system provider's technology platform had been sold to Spain's Banco Santander, Reuters reported. “Banco Santander will acquire the technology platform of the payment service provider in Europe as well as all highly specialized technological assets,” Jaffe said in a statement. In a separate statement, Banco Santander said it had agreed to acquire several highly specialised technological assets from the merchant payments business of Wirecard in Europe, to accelerate its growth plans in Europe.

Read more