The Government has approved what constitutes its largest bailout to date with the so-called Solvency Support Fund for Strategic Companies by approving 550 million for the Catalan steel group Celsa as requested by the Generalitat de Catalunya.

The Governing Council of the Fund does not wait for an agreement between the family that owns

Rubiralta

and the creditors, among which is Deutsche Bank, and has already approved the operation, according to a statement from the State Company for Industrial Participations (Sepi).

"The operation has been approved by the Management Board of the Solvency Support Fund for Strategic Companies

after an exhaustive and rigorous process of analyzing

the economic and legal situation of the company, the impact it has suffered due to COVID and the viability of CELSA Spain (Barna Steel SA and its 13 operating Spanish subsidiaries), the restructuring of the debt with its creditors, as well as the prospects for the evolution of the company and the guarantees provided to ensure the return of the temporary public financial support you will receive," the statement said.

Celsa was heavily indebted before the pandemic, but Sepi considers that it was not in crisis before 2020, an essential requirement to benefit from the fund.

The aid is orchestrated "through the granting of a participative loan amounting to 280.5 million and another ordinary loan of 269.5

charged to the Solvency Support Fund for Strategic Companies (FASEE)".

Celsa is a relevant Spanish exporting group, but Sepi has studied the case for more than a year with many doubts about whether to undertake it.

The Government of Catalonia, with the personal participation of its president,

Pere Aragonés

, has pushed hard in recent weeks to the point that the President of the Government himself, Pedro Sánchez, telephoned Deutsche Bank in person last Monday so that the creditors would facilitate the State injection ending his confrontation with

Francesc Rubiralta

and their partners.

"Celsa is an industrial mainstay in Catalonia, generator of thousands of jobs linked to industry with a sustainable production model that has the support of the Government of the Generalitat", stated on June 8 the Minister of Enterprise of the Government,

Roger Torrent.

Esquerra is a relevant partner for the stability of the current coalition government.

According to the Sepi statement, the amount is so high that it will require an examination by Brussels so that the Government can put a final seal.

"

The conclusion of the operation will require the authorization of the Council of Ministers, after validation by the European Commission."

It justifies the rescue because "Celsa generates 33,000 direct, indirect and induced jobs in seven autonomous communities"-.

He points out that "Celsa España, which forms part of the CELSA Group, is a family-owned industrial group founded in 1967 that operates in the steel sector. The group has a strong presence both nationally and internationally, being the second largest European manufacturer of long products of steel".

The FASEE has granted dozens of grants so far, including tourist groups such as Air Europa and Ávoris, industrial groups such as Duro Felguera, Ferroatlántica or Tubos Reunidos, and also investigated by the courts, such as the case of the airline Plus Ultra.

.

Conforms to The Trust Project criteria

Know more

  • European Comission

  • Minister council

  • CKD

  • Pedro Sanchez

  • Coronavirus

  • covid 19

  • ERTE