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's 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 itself.

"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 negotiation speaking to ARA, the Catalan company is currently in talks with third parties to face its debts.

It should be recalled that the Catalan telco's situation accelerated after 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 loans granted by Inveready and its main holder, Josep Maria Echarri, became due in the short term after various financial ratios established in the financing contracts –covenants– – had been breached during the previous fiscal year. This situation put Parlem's liquidity at "risk".

Specifically, as ARA has already reported, Inveready holds a significant amount of demandable bonds that could give it more weight in the shareholding. Specifically, as Parlem has already informed 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 line. Last week, another shareholder of Parlem, Global Portfolio Investments, from the Malaga-based Mayoral family, requested the convening of an extraordinary general meeting to approve the conversion of Inveready's debt into shares.