The refinancing agreement of Isolux Corsan (Master Restructuring Agreement or MRA) has been signed by the bondholders and a large majority of creditor banks. Once the deadline for the adhesion expired, the signatories of the agreement represent 89.4% of the financial debt subject to restructuring. This support allows requesting court approval in order to extend the agreed terms to all financial creditors.

The support of banks and bondholders is a step forward in the restructuring plan of Isolux Corsan. The signing of the refinancing agreement involves the injection of the new funds aimed to recover the normal pace of operations. In addition to the €50 million (US$55 million) already disbursed, the core banks will add another €150 million (US$166 million) immediately.

The restructuring plan defines three debt tranches: Tranche A of €200 million (US$222 million) (which can be increased by €75 million) of new money; Tranche B, €550 million (US$609 million) (and up to €750 million), which is considered as sustainable debt in accordance with the Group’s capacity to generate cash; and Tranche C of €1,4 billion (US$1,5 billion), which will be part of the capital structure through different convertible instruments.

As included in the agreement, next step will be the appointment of a new board of directors, which will consist of seven independent directors and two executive directors. Nemesio Fernandez-Cuesta will be the new Chairman of Isolux. To date has served as chairman of the Monitoring Committee of the Strategic Plan, a position created by agreement between the shareholders and creditors. The current CEO, Antonio Portela, will remain in place.

The group of banks participating in the transaction and the bondholders will retain 95% stake in Isolux Corsan, while existing shareholders will see their share reduced to 5%.

In the process of refinancing they have participated as Isolux Corsan advisors Rothschild, KPMG, Houlihan Lokey, Uría Menendez and LLorente & Cuenca.