Celsa Group: From Near-Bankruptcy to Stable Financials After Year of Restructuring

Celsa Group has completed its first year of restructuring, with a net result of 459 million euros. This is thanks to the approval of the judicially endorsed restructuring plan in September 2021, which allowed the company’s creditors to take control without the consent of the partners.

Without the restructuring process, Celsa would have recorded losses of 918 million euros in 2023, with negative equity of 1,187 million. The directors attributed these losses to “accounting reservations detected in previous audits.” However, the recapitalization of debt for an amount of 1,418 million euros has allowed Celsa Group to close the last financial year “with consolidated own funds of 326 million.” This and other accounting adjustments have determined that “the consolidated annual result after taxes is 459 million,” they explained.

The restructuring plan was approved by twenty creditor funds, including Deutsche Bank, Attendor Capital o Strategic Value Partners. The resolution ensured “the viability” of the business group, whose debt was much higher than its value (between 2.400 y 2.8 billion). The restructuring allowed Celsa reduce its debt by 1,418 million euros and expand by five years (until October 2028) the maturity of the remaining liability.