90% of the board from La Seda approved the capital increase of 300 million Euros

The expansion will be in two steps: the first by a bank restructuring and the second with a capital increase.

Barcelona. (EFE). – The 90% of the shareholders of La Seda have approved at the meeting held on Thursday that the company increases capital of 300 million in two steps, the first by a bank restructuring and the second with an extension of capital.

The first installment of the action will allow to convert 150 million of debt into capital, which will enable the bank to obtain 41% of the company, and the second step provides for a capital increase of another 150 million, which will leave 59% of the company in the hands of old and new shareholders.

However, as explained by the president of La Seda, José Luis Morlanes, it has been made the «first step» by approving the capital increase, «but without an agreement with banks, restructuring is not guaranteed.» «The problem we have is like a door with two keys: without the key of bank restructuring and the key to the capital increase would have no way out.»

Morlanes has assessed positively the board, where the majority of shareholders voted in favor of the capital increase, except for Fiatc and small shareholders group “Unidos por La Seda”, who have done so against. Morlanes has said the group “Unidos por La Seda” voted against was not because they disagreed with the measure, but by differences in the mumbers. He also added that «I thought Fiatc would support this measure.»

As for the accounts of the first nine months of the company, approval has also been the majority, but has refrained Fiatc, which Morlanes considered contradictory because the insurer held the presidency and vice presidency for six months in 2009 . The president has admitted that La Seda has been criticized by shareholders by reducing the nominal value of shares to 0.1 Euros per share.

«People are very hurt by the downturn of share price and I have told them that I feel the same way,» he stated. But Morlanes has held that «this is a necessary measure for the value of the shares to rise again.» Morlanes explained that other criticisms were related to «past performance» but he has told that the board is well supported and that «we must look forward.»

La Seda de Barcelona is undergoing a restructuring plan, both financial and industrial that aims to secure its future after suffering a major internal crisis which resulted in the departure of its former president, Rafael Español and the incorporation of a new management team.

Source: lavanguardia.es