The creditors of Spain-based long steel producer CELSA Group, led by Goldman Sachs and Deutsche Bank, have submitted a restructuring plan to courts in Barcelona, according to media reports.
The restructuring plan is aimed at providing a comprehensive solution to CELSA’s financial situation, reducing the company’s debt by €1.29 billion, and extending the maturity of the rest of the debt, which is €1.56 billion, to five years. If the plan is implemented, the creditors will take control of the company. The given restructuring plan proposal will not take into account the Spanish state holding company Sociedad Estatal de Participaciones Industriales’ fund worth €550 million, which was approved in June with the condition of an agreement on the debt of the distressed steel company CELSA.
Now the creditors are expecting the judge to appoint an expert to ensure the continuation of their negotiations with the company.