Date: 13 September 2010
L. (“Cristalglass”), its Spanish subsidiary, has reached an agreement to refinance most of its debt (the “Agreement”) with its major banking institutions, allowing it to continue its business plan for the next three years. The Agreement was signed in Ponferrada on June 30, 2010, with eight financial institutions: Caja Madrid, Banco Popular, Castilla, Caixa Galicia, Caixanova, Bancaja, Caja Spain, Caja Duero and Banco Sabadell.The amount of the Agreement is €44.8 MM, which represents 97% of the outstanding bank debt of The Company.
Cristalglass, is one of the leading companies in the Spanish market for construction glass and a leader in the segment of special projects and landmark buildings, employing a total of 495 persons.
Cristalglass is Vitro’s main subsidiary in Europe and has production sites in the province of León (Camponaraya and La Rozada in Parandones) and other parts of Spain (Madrid - Fuenlabrada, Valencia - Náquera and Asturias - Porceyo). It is also the holding company for the subsidiaries of France and Portugal.
By reaching this Agreement, Cristalglass is now positioned for sustainability and financial stability according to its business plan, which includes leadership in special construction projects and the diversification of its products and markets. This plan will allow the company to achieve new growth of its business and to preserve jobs.
"This refinancing agreement significantly reduces the need by the parent company to provide long-term capital resources and allows it to continue supporting the subsidiary, as usual, with cash used to finance its working capital," said Claudio Del Valle, Chief Administrative and Financial Officer of Vitro.
"This agreement reflects the confidence of the country's major financial institutions in the future performance of Cristalglass," said José Cubillo, CEO of Cristalglass.
The refinancing was achieved with the support of Equipo Económico - Madrid, which coordinated the negotiation of the Agreement.
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