Isolux seeks approval for restructuring

Grupo Isolux Corsan, a Madrid-based energy and construction company, has drawn up a comprehensive restructuring plan it will submit to creditors next week and to Spanish courts for approval no later than 29 July.

In a statement, Isolux said the proposed plan comprises three debt tranches: the first is in the amount of €200 million to restore normal business operations; the second is a €600 million tranche, considered to be sustainable debt; and the third is in the amount of €1.2 billion, to be disbursed as a participating loan that can be partially capitalised.

“Once the agreement is formalised, a group of banks will provide €150 million, in addition to the €50 million already disbursed, to secure the going concern and finance the costs of the organisational restructuring,” the company said, noting it is confident it will secure the necessary approvals to proceed with its plan.

The restructuring is part of an effort for Isolux to stay in business, as the company has found itself in financial difficulty following an €850 million bond issue last year, which proved unsuccessful in part due to allegations of money laundering, tax evasion and forgery that have plagued the company for some time and resulted in an investigation.

“The ongoing discussions between the company and its main financial creditors are governed by the strong will to quickly implement a new financial and ownership structure that allows a quick recovery of the pace of operations,” Isolux said.

According to the same statement, the sale of its solar power company T-Solar “has entered its final stretch.” The company has received four offers that it is currently reviewing, a spokesperson for Isolux told Infrastructure Investor. “In the coming days we will take a decision,” the person added. T-Solar was a subsidiary of Isolux Corsan’s concessions business Isolux Infrastructure, which the Spanish construction group divested in May.

Canadian pension fund manager PSP Investments, which already owned a 19.23 percent stake in Isolux Infrastructure, acquired that company’s toll roads and WETT, a transmission line in Texas. Isolux Corsan retained all the solar PV projects of T-Solar and the power transmission and distribution assets.

In addition to T-Solar, Isolux is also looking to sell 10 transmission lines in Brazil. It is reviewing one offer it has received with “more visibility expected” in the coming weeks, the company’s spokesperson said.