A17 concessionaire's viability agreement includes a 60% guaranteed debt forgiveness.
Brisa has just closed a viabilisation agreement of the Litoral Centro concessionaire (Brisal) with its major creditors which determines a debt cancellation of around €350 million, corresponding to a haircut of over 60% of the company’s guaranteed debt. The contract was signed last month and also includes a bond loan of up to €183.5 million subscribed by Allianz Global Investors.
This new financing will help to pay an amount of €225 million (corresponding to only 40% of the guaranteed debt) to the six associated creditors and also to BCP and CaixaBI, due to the guarantees issued in 2006 for €5.5 million that will be cancelled under this agreement.
Besides Allianz’s loan, Brisa has secured another €50.9 million in additional installments for Brisal, while the A17 concession holder itself also has cash on hand to go ahead with the operation.
With this feasibility agreement, already sanctioned by the government, Brisa remains in control of Brisal (it holds 70%), unlike what happened with the Douro Litoral concession (AEDL), whose shares passed to the creditors last year, as was foreseen in the agreement in principle signed in 2019 to resolve the disputes between the two sides.
Brisal has been in default since 2012, with recognised claims of over €840 million as of today. Around €575 million correspond to guaranteed credits of six entities that have now closed the deal with the concessionaire and Brisa: Emeral Arboretum Designated Activity Company (€201 million), Deutsche Bank (197 million), Cross Ocean (115.8 million), JPMorgan Securities (26 million), The Governor and Company of the Bank of Ireland (18.8 million) and SC Lowy P.I. (11 million). With the settlement, each of these creditors will only receive about 40%.