The final decision is in the hands of the government. He Council of Ministers must approve a request for funds to support the steel empire celsus. Rubiralta familyfounder and owner of the company for the past fifty years, turns to the filter of the executive after the verdict of the Commercial Court No. 2 of Barcelona, ​​which approves a plan to restructure creditors so that they remain in the steel company based in Catalonia.

Founded in 1967 by the brothers Francesc and Josep Maria Rubiralta Vilaseca under the name Compañía Española de Laminación SA (Celsa), it is now about to change hands if Moncloa does not prevent it on the basis of the so-called “shield of antiope” approved during the pandemic, and then expanded.

Funds under the direction Deutsche Bank celebrated the ruling, which overturns the arguments of the family that owns the company, which has accumulated an unpaid debt of about $2.400 million, partly as a result of an aggressive purchasing policy in recent years after the family broke up in 2006 between the founding brothers, both of whom have already died. The former retained the steel business, while the latter remained with the successful medical technology industry (Werfen, formerly Izasa).

The government is the one who must give the final approval as the operation is subject to Foreign investment control as a result of Royal Decree-Law 571/2023. “Effective ownership and control of a company by financial creditors will not be effective until Council of Ministers does not authorize the operation, for which investors must provide appropriate advice or a request for authorization,” sources in the Ministry of Industry and Trade explain.

Still the owners, who have held dozens of refinancing talks with the bank, say in a statement that “Celsa, with the necessary respect for the court’s decision, will monitor industrial, social and economic interests that affect not only the company, but all of it. environment, value chain and workers”.

The judge himself argues that the plan proposed by the creditors “is the only viable alternative in the medium term for the entire Celsa group”, although he warns that its new owners “should strictly fulfill their obligationsmaintaining and increasing the value of the company, maintaining its integrity, preserving jobs, and this without changing the centers of strategic decision-making, so important for the economy as a whole.

The verdict, which is not subject to appeal, is key as it is based for the first time on Bankruptcy law approved by the leader. The family that owns the house asked the judge to raise question of unconstitutionality on a point of law that the justice of the peace rejected and requested that he raise a preliminary question before the Court of Justice of the European Union (CJEU) about the possibility of approving the restructuring plan without the approval of the debtor.

Now, in a statement, they say that “the restructuring plan approved by the court means a takeover by foreign investors of a strategic Spanish company.” While this is not the first proposal based on the new bankruptcy order, this is the first time that creditors have wrested control from a family that owns a company that makes steel products for sectors such as construction, the automotive industry, or the navy and energy industries.

Industry will negotiate with new owners

From the department he manages in functions Hector Gomez convey calmness and explain that “the government I will negotiate with the new owners guarantee the future viability of the company, as well as the integrity of its business units, the preservation of all jobs, the continuity of the registered office in Spain and the implementation of modern, independent and professional corporate governance.”

The government itself approved the aid 550 million euros to deal with the effects of the pandemic. He made it through Solvency Support Fund for Strategic Companies which controlled the State Industrial Participation Company (Sepi). However, the money has not yet been paid, as this was done subject to an agreement between the owners and creditors. The latter did not benefit from public assistance in drawing up the restructuring plan.

In this sense, there are plenty of them in the industry, and for the ministry “it has always been a priority to ensure the well-being of the more than 10,000 professionals working in Celsa and the stability of their positions.” And they remember that “lender funds made this commitment.” In addition to Deutsche Bank, there are SVP, Cross Ocean, Anchorage, Golden Tree, Attestor, Goldman Sachs, Sculptor and Capital Group. At one time, they sought to capture 100% of the shares of the steel company by capitalizing their debts, but the family was ready to take a maximum of 49%.

The Generalitat will meet with the parties

For now, the descendants of the founders of Celsa have the opportunity to continue pulling the strings in an attempt to stop the change of ownership of the iconic company, founded 50 years ago and classified as strategic for national production of steel. He Government The Generalitat of Catalonia has already announced meetings with stakeholders.

After hearing the verdict Judge Alvaro Lobatothe lenders announced that they would appoint “a new board of directors composed of respected world-class professionals who will help maximize the company’s potential.”

The current board of directors consists of the company’s executive president Francesc Rubiraltaand his brothers Karola and Ignasi. There are also leaders Francesc Messegue and Juan Carlos Orozco, as well as independent members Jorge Sendagorta Gomendio (Sener) and Xavier Pujol Artigas (Fikosa).

During the litigation, the current owners argued that Celsa was worth $6 billion in real value, so it could theoretically pay off its huge debts. But the justice of the peace finds that the debt exceeds the value of the company, calculated Lazard. The calculation provided by its owners was a far cry from the calculation made by the firm appointed to judge the value of the group (Lexaudit), which ranged from $2,400 million to $2,775 million. The company ended 2022 with a gross operating result of 867 million and a turnover of 6.084 million.

Lenders will now have to take the step and ask Moncloa for final approval. Depending on the timing, the decision to transfer control of the funds or allow the family to keep them may be approved by the current Council of Ministers, given the strategic nature of the company. In theory, the post-general election government can only make emergency or procedural decisions until a new chief executive takes office. The political scenario looks long-term.