Ezentis Group reported yesterday afternoon the decision to enter into pre-bankruptcy of creditors. The telecommunications infrastructure operator indicated that his Board of Directors has made this decision in light of the knowledge that due to the “treasury stress” that has been suffering in recent months, the company is in a situation of imminent insolvencywhich could become current in the coming weeks.
In the communication sent, he acknowledges that the Council has been working in recent months on a viability plan that it can ensure the continuity of the Company and its subsidiaries and that it has received the support of both its main client and financial institutions. However, today it has not been possible to guarantee the necessary premises for such viability (especially the relevant cash entry), for which the entity has agreed to present the communication of opening negotiations with creditors.
“The decision to present the aforementioned communication to open negotiations with the creditors – which has also been adopted by the administrative body of the Company’s national subsidiaries – has been adopted after obtaining the appropriate external advice and with the aim of protecting the interests of the creditors and shareholders of the Company, enabling additional time to reach the necessary agreements with the creditors”, they explained.
This application was submitted yesterday 1 September in the competent court of Seville.
Likewise, Ezentis has reported that the subsidiary of the Company in Germany has filed a declaration of insolvency with the appropriate body.
Let us remember that last May the company requested a rescue of 70 million euros to SEPI (State Company of Industrial Holdings) which was rejected. One of the great economic problems that haunt the group is a debt of around 130 million.
Also, their first quarter results they were not good. Ezentis closed the first quarter of the year with revenues of 82.8 million euros, a reduction of 12.2% compared to the same period in 2021.