Parlem resorts to an external expert to negotiate with its creditors

BarcelonaThe Catalan company Parlem Telecom is resorting to a restructuring expert to facilitate negotiations with its creditors. As the company communicated this Wednesday to BME Growth (the SME stock exchange), the move comes after, in separate proceedings, both the company itself and several creditors requested the Barcelona Court of First Instance, Commercial Section, to appoint an independent figure to find a way to deal with existing short-term debts. The firm tasked with carrying out the work, as designated by the court, will be AGM Administracions Concursals i Reestructuracions, which had been proposed by the company, not by the creditors, who preferred another agent. Sources close to the Catalan company have welcomed the fact that the third parties' proposal has been rejected.

"The objective of appointing a restructuring expert is to seek an agreement with its creditors that allows for dealing with existing debts and does not imply the immediate implementation of a restructuring plan," states Parlem. According to sources close to the negotiations speaking to ARA, the Catalan company is currently in talks with third parties to address its debts.

It should be recalled that the Catalan telco's situation was precipitated by its refusal to integrate with Avatel. The investment fund Inveready, which is a creditor and shareholder of the Catalan company, also owns Avatel and was the main guarantor of the possible merger of the two companies. But a few weeks after deciding to reject the integration, several credits granted by Inveready and its main holder, Josep Maria Echarri, became due in the short term after different financial ratios established in the financing contracts –covenants–had been breached during the previous fiscal year. The situation left Parlem's liquidity in "risk".

Specifically, as ARA already explained, Inveready owns a significant amount of convertible bonds that could give it more weight in the shareholding. Specifically, as Parlem already reported to BME Growth, it has a debt of 11.1 million euros convertible into shares. In addition, Josep Maria Echarri – through The Nimo’s Holding SL – can also request to collect 5.5 million corresponding to a credit policy. Last week, another Parlem shareholder, Global Portfolio Investments, from the Malagan Mayoral family, requested an extraordinary general meeting to approve the conversion of Inveready's debt into shares.