After a failed three-month battle to save the business, Spanish infrastructure group Isolux Corsán yesterday decided to apply for bankruptcy proceedings.
Seven group companies employing 1,992 people on projects around the world are affected. These companies owe €405m to suppliers, while the group’s total debt stands at €1.27bn, the company said.
The president and the six members of the board resigned "to facilitate the administration of the company in this new stage", said the company, which reported revenue of €3bn in 2015. Another president, David Pastor, was appointed yesterday morning.
The group is now trying to sell off its companies and says that six offers of acquisition of "diverse productive units" have been received in recent days.
The decision marks the end of the company’s three-month fight to save itself. On 31 March Isolux Corsán filed for protection from creditors under the Spanish Insolvency Act to negotiate a fresh injection of funds to reactivate operations.
It also began cutting costs and launched a new business plan to build up its project portfolio. It employed just over 5,200 staff at the time, with projects in 25 countries.
Problems continued, however. In April Bolivia rescinded contracts worth $150m to build a road and a dam signed with Corsan-Corviam, an Isolux Corsán subsidiary, citing missed construction deadlines, reported Reuters.
In 2015 the company’s chief executive, Luis Delso Heras, declared that the group had begun a "transformation towards a new Isolux CorsaÌn".
This transformation included selling assets considered non-core, focussing completely on engineering, procurement and construction, and growing in the Middle East, Europe and North America.
Image: Mexico’s Autopista Perote-Xalapa was built and operated under concession by Isolux Corsán (Isolux Corsán)
