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Wednesday, September 28, 2022
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Vaciero assists Euroconsult with Tertius Insolvency agreement modification

Vaciero has advised Euroconsult on its approval of the modification of its agreements with creditors after the entry as an investor of the Tertius Capital fund

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The engineering company, under this new legal instrument, and advised by the legal and financial services firm Vaciero, has managed to reduce its “old debt” with reductions of up to 90% and is once again placed in a scenario of continuity, with the support of Tertius as a travelling companion. 

The modification of the Insolvency agreement of the companies EUROCONSULT, S.A., EUROCONSULT NUEVAS TECNOLOGÍAS, S.A. and EUROCONSULT ENGINEERING CONSULTING GROUP, S.A. has been approved by the Commercial Court number 7 of Madrid by judgement dated 10 February 2022, thanks to the support of the Tertius Capital fund, which has acquired, via purchase and sale, credits owned by the bank pool for a value of around €16 million, on a total of €21 million in liabilities.

In November 2019, the aforementioned companies emerged from insolvency proceedings, with the approval of the judgments of the proposed agreements with creditors drawn up by the aforementioned companies, which in itself was considered an important achievement, having achieved the adherence of creditors to proposals for reductions of up to 70% of ordinary liabilities, and significant delays in the payment period was not enough with the situation generated by COVID-19.

Following the declaration of the state of alarm on 14 March 2020, barely four months after the approval of the agreements, proposals for amendments to the agreements were submitted, based on the provisions of article 8 of Royal Decree-Law 16/2020 of 28 April on procedural and organisational measures to deal with COVID-19 in the field of the Administration of Justice (hereinafter “RD-Law 16/2020”). The above, in order to avoid a liquidation scenario, with the aim of avoiding the loss of value, the destruction of the business fabric and jobs.

Euroconsult is an engineering company with nearly 50 years of experience as a consultant in civil works, building, transport engineering and services. During this time, the company has developed as a transversal engineering company covering all phases of the project, from design to drafting, execution and conservation and maintenance.

Listed on BME Growth, the company operated in some twenty strategic markets such as Germany, the United Kingdom, Mexico, the United States, Peru, Brazil, Panama, Saudi Arabia and the United Arab Emirates, among others. In this sense, Euroconsult came to be considered among the top ten Spanish engineering companies and has been part of the Forum for Engineering Excellence (Fidex).

However, the company’s growth, both directly and through its subsidiaries, was not as well-paced as might have been expected. Thus, both the lack of public investment and delays in the approval of budgets affected its domestic business and, therefore, the company’s ability to maintain sales figures compatible with its cost structure, being dragged down by the crisis in which most civil engineering companies in Spain were immersed, forcing the group to file for voluntary Insolvency proceedings for, among others, three of its companies: EUROCONSULT, S.A., EUROCONSULT NUEVAS TECNOLOGÍAS, S.A. and EUROCONSULT ENGINEERING CONSULTING GROUP, S.A.

Ricardo San Marcos, vice-president and head of the Insolvency and Restructuring department of Vaciero and Begoña González, Commercial and Corporate Law partner, advise on the matter.

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