This measure completes the restructuring of the debt of projects financed by Reindus, through which the Consortium already achieved significant savings of 1.4 million euros in a first phase in February
These actions are part of the Viability Plan launched by the current management team
The debt, contracted in previous administrations, was weighing down the income statements and the treasury of the Institution
The Free Trade Zone of Cádiz has achieved the restructuring of all its debt for projects financed by Reindus and has reduced this by 12 million euros in a second phase of the Comprehensive Debt Restructuring Plan that it is carrying out, thus achieving a significant improvement in its financial situation with short-term liquidity and long-term solvency.
The Reindus debt represented a significant burden on the Consortium's accounts. Thanks to this restructuring, which establishes a new payment schedule, greater flexibility and optimization of the Free Zone's treasury is achieved.
It must be remembered that the Cádiz Consortium already achieved significant savings of 1.4 million euros last February after achieving the restructuring of a first phase of the Reindus debt. Thus, after several efforts in this regard before the General Directorate of Industry, the current management team of the Free Zone achieved approval in December 2020 for the refinancing of part of the Reindus debt, which was placing a heavy burden on the Institution, conditioning both its income statement and its treasury.
These loans were weighing down the Consortium's accounts considerably and were motivated by actions inherited from previous administrations, especially the acquisition of the former Altadis lands.
The objective of the Comprehensive Reindus Debt Restructuring Plan is to increase solvency and financial savings, achieving a significant improvement in the situation that will be reflected in the Consortium's accounts for the 2020 financial year.
Along these lines and in parallel, the Free Trade Zone is also making progress during these months in contacts with banking entities in order to carry out a restructuring of the debt contracted with them and also inherited from previous administrations. This refinancing, which the Consortium plans to have ready after the summer, is equally important for the entity since it involves the reduction of financial expenses, which will allow it to provide greater liquidity to the Institution and thus be able to consider making new investments.
All of these actions are part of the Viability Plan launched by the current management, which is already producing the desired results and which are expected to be seen even more in the coming years, in which the increase in turnover and the budgetary stability and financial sustainability of the Fiscal Institution will be consolidated.