Naviera Armas goes to the Rescue Fund to keep afloat

2020/11/20 09:22:46 Written by Canarian Weekly Business

Naviera Armas, the shipping group that owns Transmediterránea ferries, has turned to the state rescue fund, the Society for Industrial Participations (SEPI), requesting help through an injection of public funds. At the beginning of the month, the Canarian company confirmed that it was working on a restructuring plan to address the debt it has with its creditors, and denied that it was in bankruptcy.

In statements to the Efe news agency, its Director of Institutional Relations, Paulino Rivero, explained that, like other companies linked to strategic sectors such as transportation, they were working on a debt restructuring plan to meet their commitments, and be able to overcome the adverse situation caused by the coronavirus pandemic.

Yesterday, business sources confirmed that the company has registered a request for help through the Rescue Fund to Support the Solvency of Strategic Companies, managed by SEPI, which is endowed with 10 billion euros.

This fund, which Air Europa were the first to make use of, is designed to provide a lifeline to companies of strategic value for the Spanish economy, that were profitable before the pandemic and whose viability has been compromised as a result of it.

After a detailed evaluation by the fund's managing committee, in which SEPI and the ministries involved in the business, economic and fiscal departments are represented, resources are injected into the companies that have requested it through conventional or participative loans that have to be paid back, as well as through other instruments that are specific according to each individual case.

Those responsible for the fund are now studying the request for help from Naviera Armas, the amount of which has not been disclosed, although sources suggest that it exceeds 100 million euros. The final amount, and the terms of the redemption, will depend on the evaluation made of the real situation of the company, which has also presented a viability plan to the managing council.