Change of boss day. The deepening crisis across the company, which has placed it in a negative net worth situation, has claimed on Friday the head of Antonio Coto, who had replaced Ricardo Currás in August, as reported by the company through relevant facts called CNMV.
Borja de la Cierva will replace him in front of the council, including Jaime García Legaz, former president of Aena, and Miguel Angel Iglesias Peinado. The company also informed that it would close with creditors' bank agreements to refinance the debt, which contemplated a 200 million liquidity line to continue operating and a capital increase of 600 million. In addition, he reviews his account and acknowledges that, as a result of deteriorating several assets, the asset is in negative net worth.
With an immediate agreement with the bank, when confirmed, the company will achieve a break. The company has reached an agreement to refinance its bank debt and activate the credit line to fulfill its short-term commitments. The National Securities Market Commission has suspended the price of the company before the opening of the market, pending the release of relevant information about the entity mentioned above.
Rumors about the alleged agreement were almost completed with the bank starting yesterday afternoon and, in fact, the title skyrocketed at the end of the session on Thursday, marking a 22% increase (in negative days for the stock market in general), up to 0.44 euros per share, following improvement that starts at 3:30 a.m. The company, though interesting, has accumulated a 90% decline in the market so far this year. Its total capitalization on the stock market is now only 269.7 million euros.
The supermarket chain has lived a year more than turbulent. The first clear signs of the crisis began to appear in February. The Russian tycoon Mijail Fridman just made 25% of the title when the company presented 2017 results: he gained 37% less due to a decline in sales in Spain. The yield to March was even worse, with a decline in profit of 74%, which caused the stock market to drop by 9%.
Since then, he has declined: in August, surprisingly, the chain fired CEO, Ricardo Currás. Russian partner Fridman raised its holdings to 29% and recovered on the stock exchange, with the prospect of a possible takeover. However, on October 15, the company announced that it was reducing its forecast for 2018. And the decline in the market was a record: down 42.2% in one day. The decline has occurred since then, worsened after the rating agency lowered bonds to rubbish.
The problem ensued: he corrected his account in October to open the invoice, he refused to publish his profit figures until September and interim president Stephan DuCharme resigned from his position last week to work outside the "sustainability plan". He must leave Ibex.
On December 12, the company announced that it was preparing a capital increase of 600 million euros – more than double the stock market capitalization – to "strengthen the group capital structure". And that, in parallel, he finished renegotiating his debt with several banks, which he hoped would be closed before the end of the year, which included a credit line to cover payments to suppliers.