Friday, November 15, 2013
Link to article on IRgA Today:
Service Point Confirms Shut-Down of U.S. Subsidiary; Promises "Concrete" News Later
Kudos to Ed Avis, Managing Director of the IRgA, for reporting on this incredible story. In the article up on IRgA Today, Ed provided a link to an article on Yahoo.
Here’s a Google-Translate translation of the Yahoo Finance Espanol article:
“The American subsidiary of Service Point paralyzes its activity”
The company will maintain a meeting next week with creditor banks to discuss their new offer
MADRID, 15 (EUROPA PRESS)
The American subsidiary of Service Point (Madrid: SPS.MC - news) , which represents 8 % of total sales of the group and whose manager is currently Ernst & Young , has suspended its activity, as reported by the company to the National Securities Market (CNMV ) .
The Spanish group, which decided last October last preconcurso creditors present at the rejection of their proposals financial institutions to refinance its debt, explained that its management team has requested additional information from Ernst & Young, currently managing holding company that groups the activities of its subsidiaries in the United States, United Kingdom, Norway and Sweden.
Service Point added that plans to inform the market as "take concrete news " about the status of its U.S. subsidiary.
Also, in a relevant fact to the regulator, the firm has stated that over the past few months has been working on solutions syndicated debt restructuring.
In this regard, the company introduced this week a proposal that includes a wholesale debt repurchase amount, less constraints and a smaller implementation schedule in order to get closer to the positions of the banks.
MEETING NEXT WEEK
The company, which has ensured that this proposal "clearly improved" the current alternative of banks to sell assets, has advanced to a meeting is scheduled with banks next week to discuss the terms of the offer and negotiate alternatives.
Financial institutions reported on 24 October that it would not accept any of the proposals submitted earlier by the firm. For this reason, Service Point decided to present creditors preconcurso.
Article 5 bis of the Bankruptcy Act, by which the company welcomes the preconcurso, allows the company to have a period of three months, extendable to four, to renegotiate its debt before having to file for bankruptcy.
Posted by Joel Salus at 8:15 AM