Fagor Electrodomésticos, in creditors’ pre-contest

Industry

Fagor has informed the Commercial Court of San Sebastian the negotiations’ beginning, so to reach an early agreement on debt restructuring under the provisions of Article 5.3 of the Insolvency Act. Now, the company has a time of four months to expand the negotiations channels that are necessary to reach an agreement with its creditors, which began weeks ago , to meet immediate payments that will allow Fagor to normalize its activity.

Oct 16, 2013

The decision was taken today in Fagor Electrodomesticos, after the unanimous deliberation of the General Council of the Corporation, once considered that the " MONDRAGON cooperatives” cannot afford the extra mile, adding to the one made in May to the constitution of the fund FRES, with 70 million euros for helping Fagor Electrodomesticos. "

Commitment to the employment

Also, the General Council, on behalf of the Corporation, has expressed its commitment for supporting the employment for the Fagor Electrodomesticos coop-members and therefore, will be committed to the creation of an “Employment Corporate Office” to support and enhance its activity generating new jobs and businesses.
It also commits itself, to present at the next Congress, the initiatives needed to allow the constitution of a fund, focused on providing an amount close to 50 million euros for financing the above commentments.