The council of ministers of Spain has approved the €550 million fund allocated by the Spanish state holding company Sociedad Estatal de Participaciones Industriales (SEPI) for the rescue of the financially-distressed domestic steel producer CELSA.
However, CELSA is still facing obstruction by its creditors led by Goldman Sachs and Deutsche Bank regarding the use of the funds in question as the creditors refuse to agree with the company regarding the reduction of its debts.
SEPI accepted the allocation of €400 million of the fund to be used for paying the company’s debts and €150 million to finance its strategic plan with the condition of a €50 million capital increase.
Rubiralta family, the owners of CELSA, has debts totaling €2.3 billion.
