Celsa's trial concluded this Tuesday marked by the confrontation between the Rubiralta family and the creditors who control 90% of the debt. The shareholders of the Catalan steel company reject the plan of the funds –SVP Global, Deutsche Bank, Sculptor and Anchorage– that intend to take over the property by converting the debt into shares through a restructuring plan provided for by the new bankruptcy law.
The issue is transcendental for the country, since the future of an industrial group that employs 10,000 people and bills 6,000 million a year depends on it. Judge Álvaro Lobato, head of the commercial court number 2 of Barcelona, will settle the matter in the first ten days of September. The sentence that he will dictate will be final, unless he admits the prejudicial and unconstitutionality issues that the property raises against the bankruptcy law.
The lawyers for both parties – the Cortés law firm representing the shareholders, and Gómez-Acebo
If, on the contrary, the funds take control of Celsa, the debt will be reduced by 1,291 million euros since the creditors will capitalize it in shares. In any case, they must draw up a new plan to refinance the remaining part of the liability. In addition, they will appoint an independent council to manage the business.
One of the key aspects to settle the future of the property is the valuation of the company. If it is 2,800 million – as the funds maintain through a Lexaudit report – they could take full control of the company. If instead it is 6,000 million – as the property maintains through a Lazard report – creditors could only capitalize a third of the property.
Both parties faced the risks of the contrary plan. While the shareholders assured that the funds would lead “Celsa to collapse in a matter of weeks”, the funds said that if the judge did not approve the plan, the group “would be forced into bankruptcy and liquidation”.
