A centuries-old tapestry factory in Spain has come back from the brink of bankruptcy after an injection of public money, a debt restructuring plan and its biggest order in 200 years - a German commission for dozens of tapestries. The turnaround of the 296-year-old Royal Tapestry Factory in Madrid is a rare bright spot for Spanish companies facing insolvency. Nearly 50,000 businesses have entered administration since the start of the country's economic downturn in 2008.

Telefonica SA’s efforts to reduce its debt pile suffered a new blow after the Spanish carrier was forced to scrap the initial public offering of its infrastructure unit, Telxius Telecom SA, as demand from investors proved inadequate, Bloomberg News reported today. Telefonica will continue “to analyze strategic alternatives” for Telxius, the Spanish carrier said yesterday. The decision to call off the sale was reached together with the banks that were managing the IPO, the company said.

Spain’s robust economic expansion is defying concerns that a political impasse, now in its ninth month with no end in sight, would tarnish one of Europe’s economic bright spots, The Wall Street Journal reported. But the pillars that have sustained Spain’s recovery from recession are showing signs of strain, and economists expect growth to slow in 2017—in part because political uncertainty is putting a damper on some kinds of investment. The Spanish economy grew 0.8% in the second quarter driven by consumer spending and exports, the country’s statistics agency said Thursday.

Credit ratings agency Moody's said on Wednesday the restructuring plan put forward by Spanish renewable energy and engineering firm Abengoa would reduce its debt burden, but it was unclear whether it would be successful, Reuters reported. Abengoa, which had been negotiating since November to cut its more than 9 billion euros ($10 billion) of debt, reached a restructuring deal earlier in August with its main creditors in an attempt to avoid becoming Spain's biggest ever bankruptcy.

Abengoa SA won agreement from major creditors for a rescue plan, potentially averting Spain’s largest corporate insolvency, Bloomberg News reported. Investors including Elliott Management Corp., Centerbridge Partners LP and Varde Partners LP will provide 1.17 billion euros ($1.3 billion) of new loans in exchange for a 50 percent stake, according to a regulatory filing on Thursday. The renewable-energy producer’s existing shareholders, including a company part-owned by the founding Benjumea family, will be left with about 5 percent. Abengoa has until Oct.

Eurozone governments set out new fiscal targets for Portugal and Spain as they backed the decision by the European Union’s executive not to fine them for missing deficit targets, The Wall Street Journal reported. The European Commission had recommended last month after protracted discussions that the two countries should not be fined. The commission acknowledged the difficult economic environment and the reform efforts of both countries, but the decision led some to warn the bloc’s fiscal rules were being dangerously undermined.

Grupo Isolux Corsan SA won creditor approval for a 2 billion-euro ($2.2 billion) debt-restructuring plan, paving the way for a Spanish court to authorize the program, Bloomberg News reported. The engineering company received backing from almost 90 percent of creditors and it intends to ask the court to impose the plan on other bondholders, according to a statement on Thursday. Under the proposal, 1.4 billion euros of debt will be turned into convertible instruments, giving creditors 95 percent of the restructured company. Existing shareholders will retain 5 percent.

Banco Santander of Spain said on Wednesday that its profit declined by nearly half in the second quarter on restructuring charges and a contribution to a fund to help finance bank “bail-ins” in Europe, the International New York Times reported. For the three months ended June 30, the lender reported a profit of 1.28 billion euros, or about $1.4 billion. That compared with a profit of €2.54 billion in the second quarter of 2015. The second quarter included a gain of €227 million on the sale of its stake in Visa Europe.

European Union officials, facing the rise of populist movements across the region, opted against hitting Spain and Portugal with sanctions on Wednesday for breaking the bloc’s rules on government spending, the International New York Times reported. The refusal to impose fines highlights how the 28-nation bloc is struggling with divergent strains of populist and anti-European forces across a region where one member state, Britain, has already voted to leave.

The private sector in Spain is set to shoulder most of the burden as the government moves to bring its wayward deficit into line, after the economy minister unveiled plans to raise an extra €6bn in corporate taxes next year, the Financial Times reported. Madrid is under intense pressure to find new ways to cut its yawning budget shortfall after EU finance ministers agreed on Tuesday to formally open sanctions procedures against Spain and Portugal.