GLAS News

December 7, 2023

GLAS performed a significant number of roles in the successful 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.

GLAS team

The GLAS deal team comprised Mia Drennan, Melanie Ockenden, Amy Weldon, Natasha Chan, Anna Jeffrey, Isabelle Barrett, Georgios Vrentzos, Maya Al Halaseh and Shahaana Kulendran.

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.

Summary
Article Name
GLAS acted as agent and security agent on the first-of-its-kind restructuring of international shipping company Vroon
Description
This was the first restructuring to be carried out using a parallel English scheme of arrangement and Dutch WHOA plan. This restructuring involved certain lenders receiving participations in a new syndicated secured facility, while other lenders had their facilities amended as well as a debt-for-equity swap.
Author
Publisher Name
GLAS
Publisher Logo
EMEA, London, Restructuring