Financial advice to the business solvency support fund

Spain

The Spanish government created the Solvency Support Fund for Strategic Companies to mitigate the effects of COVID on the activity of companies that are strategic for the Spanish economy. The function of this fund is to provide temporary public support to companies that are considered strategic. This support is linked to the recognition of their viability and to a financial restructuring process that allows the consolidation of their activity.

This process is coordinated by SEPI, which selects IDOM as one of the companies qualified for the provision of financial advice on the operations. Within this framework, IDOM is advising the Solvency Support Fund on the refinancing operation of a company that is linked to the activity of the EPC in the energy sector. The review of the business plan presented by the company, the proposals for its modification and validation were the first steps of IDOM’s scope. Once the business plan was considered viable, a refinancing scheme was proposed that combined temporary financial support from the Fund with a rescheduling of debt with financial institutions. All this was accompanied by a medium-term exit scheme for the Fund.

Finally, support is provided to SEPI and the strategic company in the process of closing the agreement between the different parties, issuing reports on the different modifications arising from the negotiation process.

As a result of the process, an agreement was reached between all parties for the financial restructuring, with ratification of the participation of the solvency support fund for strategic companies by the Council of Ministers. At present, the company continues to operate with good prospects.

Financial Advisory : Strategy & Operations