The British Court upheld today the agreed financial restructuring of La Seda de Barcelona, which is the first time a Spanish company gets to adopt a process of ‘scheme of arrangement’.

The company said today, with this British judge’s approval culminates an intense process of negotiation with financial institutions that make up the syndicated loan, amounting to 600 million Euros.

The ‘scheme of arrangement’ is a formula applied to companies immersed in a crisis that allows renegotiation of debt with the support of 75% of the liability, rather than 100% as currently required by Spanish law.
Thus, if three-fourths in value of the debt and half plus one of the ‘lenders’ bank accept the terms of the restructuring, ther vote is extended automatically to 100% of the debt.

La Seda de Barcelona in meetings prior to the official presentation to the British Court was 95.5% of votes in favor of the financial restructuring of the Syndicated Loan. Today at the hearing, none of the ‘lenders’ has presented to oppose the process.