Isolux Corsan directors approve bankruptcy for seven group companies

By Caroline Salls

Pittsburgh, July 5 – Isolux Corsan SA’s board of directors agreed to apply for bankruptcy proceedings for the seven group companies that filed proceedings under the Spanish Insolvency Act, according to a news release.

Isolux said the president and the six members of the board of directors of the engineering and construction group submitted their resignations in order to facilitate the administration of the company in this new stage.

The company said the bankruptcy proceedings affect Isolux Corsán Group, Corsán-Corviam Construcción, Isolux Ingeniería, GIC Concesiones, Isolux Corsán Servicios, Isolux Corsán Inmobiliaria and Isolux Energy Investments.

The total financial debt on the balance sheet of the group was €1.27 billion as of April 30, of which €557 million was associated with project financing.

Since the insolvency proceedings were filed on March 31, the group said its management has been working on an industrial viability plan, the search for an investor for the engineering and construction business and the implementation of solutions to facilitate the continuity of most of the ongoing projects.

According to the release, the group’s management, the main shareholders and advisers have prepared the restructuring process with the aim of maintaining as many jobs as possible, limiting the risks deriving from guarantees in place and facilitating the continuity of the company through the projects that have so operative and financial viability.

In the last days six, Isolux Corsan said it has received offers to acquire diverse productive units, several of which propose the absorption not only of direct personnel, but also of an important number of workers in corporate areas.

The company said it is up to date on payroll and Social Security and Personal Income Tax obligations.

In addition, a general shareholders meeting subsequently approved the appointment of new directors, including David Pastor as president, David Vilella and Enrique Medina, the representative of the Fuster & Partners.

Isolux Corsan operates in energy, construction and industrial services. The company filed for bankruptcy on July 29, 2016 in the U.S. Bankruptcy Court for the Southern District of New York under Chapter 15 case number 16-12202.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.