On Aug. 3, the Council of Ministers finally approved the long-awaited bill for the adaptation of our insolvency legislation to EU Directive 2019/1023 regarding preventive restructuring frameworks, discharge of debt and disqualifications, according to commentary published by The Corner. In addition, measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt. Great hopes had been placed on it because it was thought that it would help to save companies that, although going through a difficult patch, were viable.
Spain
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Invesco Ltd. and Searchlight Capital Partners LP are lobbying creditors of Mediapro to back a restructuring deal enabling them to take a stake in the producer of top-flight Spanish soccer broadcasts left reeling by the pandemic, Bloomberg News reported. The investment firms sent a restructuring proposal to lenders to Mediapro including Cairn Capital Ltd. and Carlyle Group, on Tuesday, according to people familiar with the matter.
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Spain’s largest hotel chain Melia Hotels has filed a complaint against the government with an administrative court seeking 116 million euros ($138 million) in damages incurred due to last year’s COVID-19 restrictions, the company said, Reuters reported. A spokeswoman for the group said on Wednesday the claim was related to losses suffered as a result of the government-imposed lockdown between mid-March and late June of 2020, confirming a report by the newspaper Expansion.
Spain’s government approved an 11 billion-euro ($13 billion) plan to help companies pay down debts accumulated during the pandemic, Economy Minister Nadia Calvino said, Bloomberg reported. The package, which has three parts, will leave companies better poised for the economic recovery, Calvino told journalists during a televised news conference on Friday. The announcement is the latest example of how European governments are accelerating plans to prevent defaults and corporate bankruptcies as businesses struggle to survive extended pandemic restrictions.
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.
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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.
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.
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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.
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.