The board of Deoleo has approved the restructuring of the company, an operation that leads to minorities lose all their investment and that has been defended by those responsible for the oil company as "the only alternative to save" to the bankruptcy company. The titles of the company, tremendously volatile since the start of the year, have celebrated the news with sharp increases of 6.67%, although it has come to pick up more than 14%.
"It is an indispensable process, the group cannot pay the debt that came to it in September, of 60 million euros, "said the president and CEO of the group, Ignacio Silva, who has described the situation as "unsustainable".
During the meeting several minority shareholders have taken the floor – some of them have already sued the firm – to show his outrage over the management of Deoleo in recent years and criticize the restructuring, which in practice leaves its shares to zero if they do not go to the capital increase.
Specifically, a 'accordion operation' for the compensation of losses, the segregation of assets in the framework of its debt restructuring process of 575 million euros and the settlement of Deoleo Preferred has been submitted to the shareholders meeting for approval, among other points.
The company that owns oil brands such as Koipe or Carbonell has given 'green light' to this operation that will lead to the reduction of capital to zero for the compensation of losses and a simultaneous capital increase amounting to 50 million euros with the objective of restoring the equity balance and obtaining funds for the repayment of part of its debt.