GLAS performed a number of roles in the restructuring of Celsa Group under Spain’s new insolvency law
GLAS was excited to be part of the Celsa Group restructuring, the first restructuring plan to be launched under new Spanish insolvency legislation which came into force in September 2022.
Celsa Group
Celsa Group is Europe’s leading producer of circular and low-emission steel and is the largest circular supply chain in Europe. It recycles ferrous scrap to produce steel in electric arc furnaces, using the most sustainable and energy-efficient technology.
New Spanish insolvency legislation
Spain’s new insolvency legislation allows debtors to make use of pre-insolvency mechanisms early and benefit from court protection when they expect to be unable to regularly meet debt obligations due within the next two years. The Celsa Group restructuring is the first landmark test of the new law.
Successful Celsa Group restructuring
The comprehensive debt restructuring of Celsa Group was successfully completed on 30 November 2023.
As a result of the transaction, the group’s debt of €2.7 billion has been reduced by €1.29 billion. The transaction involved a debt-for-equity swap of the entire convertible debt and 15% of the jumbo debt into 100% of Celsa’s shares, and the extension of the remaining debt maturities by five years.
GLAS performed a significant number of roles
GLAS was appointed on a significant number of roles in the restructuring, acting as Restructuring Agent in connection with the restructuring plan and as Agent, Security Agent and Equity Agent in respect of the post-restructuring financing and equity arrangements. GLAS was also the Agent under the Celsa Group’s pre-restructuring financing arrangements and worked with multiple stakeholders to implement the restructuring.
Links
Celsa Group website.
More about Spain’s new insolvency law at Reuters.
About GLAS
GLAS was established in 2011 as an independent provider of institutional debt administration services. The company was originally created to provide the market a willing participant in complex loan restructuring transactions where many large institutions are reluctant to take swift and cooperative action. It offers a wide range of administration services developed specifically for the debt market.
GLAS is recognised as the premier independent, non-creditor, conflict-free provider of loan agency and bond trustee services, with excess of USD320bn of assets under administration on a daily basis. For more information, please contact media@glas.agency.
