The board of Deoleo approved on Friday its restructuring, an operation criticized by the minority shareholders, but defended by the leaders of the oil as “the only alternative to” save the company from bankruptcy. The company closed the day with an increase of 6.67 per cent on the Stock exchange.
MORE INFORMATIONDeoleo lost 291 million in 2018 and enter cause of dissolution
The rescue plan provides for the entry of the banking creditor in the register of shareholders of the company, which will hold a 49% after capitalizing debt, in the framework of the process of refinancing of liabilities of € 575 million. The restructuring —agreed with creditors in September— provides for the establishment of a society called Deoleo Global, to transmit the assets and liabilities.
The board has also given the green light to a reduction of the share capital to zero and a subsequent expansion of 50 million euros. According to the president of Deoleo, Ignacio Silva, the debt of the company —that in 2019 incurred two times in a position of technical bankruptcy— now 575 million, will be reduced to 242.
“it Is an indispensable process, the group can't pay the debt you came over,” Silva said in his address to the general meeting. Several minority shareholders expressed their discontent over the management of Deoleo in the last few years, and criticised the restructuring that, in practice, leaves zero your shares if you do not come to the capital increase.Updated Date: 18 January 2020, 12:00