A major shareholder in – and creditor of – SOS Corporacion Alimentaria has reportedly backed the Spanish food group’s recapitalisation plans.
According to a report that appeared today (23 April) in El Mundo, Spanish bank Caja Madrid has indicated that it will not sell its 10.5% stake in the company and will support the group’s attempts to reduce its debt levels.
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A spokesperson for the savings bank declined to comment on the olive oil maker’s investment policy when contacted by just-food.
Likewise, SOS has insisted that it is unable to comment on the dealings of its shareholders.
However, a spokesperson for the group did suggest that SOS is making “good progress” as it looks to restructure its debt.
The board of directors recently approved a capital increase, which the spokesperson insisted was “essential” to its debt restructuring.
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By GlobalDataThe capital hike will be introduced in two stages – the first, of EUR60m (US$80.9m), will be directed at the savings bank-shareholders of the group in exchange for SOS debt.
This group includes Caja Madrid as well as Cajasol, Montes de Piedad y Cajas de Ahorros de Ronda, Cadiz, Almeria, Malaga and Antequera, Caja de Ahorros y Monte de Piedad de Cordoba and Caja General de Ahorros de Granada.
The support of these savings banks will therefore be vital to the heavily indebted food group’s plans to reduce its debt level, the spokesperson acknowledged.
The second hike, of EUR112.18m, will be through cash placements.
