Four years later Mango proposes a 75% removal of his debt

Mango has presented a proposal for an agreement of creditors to pay its debt of 1,565 million euros and overcome the bankruptcy in which it is immersed since 2009, which includes a 75% removal of the liability and pay the rest for fifteen years, with a calendar that would start in 2015 and culminate in 2029.

In this proposed agreement

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Presented this week in the Commercial Court number 2 of Madrid and to which Europa Press had access, the Nozaleda family real estate company proposes a second payment option to its almost 400 creditors, among which are the Tax Agency, Social Security and various municipalities.

It is about affecting the credits to the income that Mango obtains from the rescission and nullity of contracts that have been produced and estimates will continue to be recorded during the bankruptcy process.

The payment plan also contemplates paying in full and in the first year after the bankruptcy process, any debt that does not exceed 1,000 euros, even if its holders do not join the agreement.

With this measure

It seeks to “avoid major problems for these creditors, several of them self-employed workers with limited economic possibilities. “The company considers that its proposed agreement has an “economic-financial sustainability” that, in its opinion, allows “reasonably anticipate the continuity of society”.

Mango justifies that the plan exceeds the limits of removals and expectations set forth in the Bankruptcy Law, appealing to the “exceptional circumstances of the economy”, which “force the survival of each company to be of special importance. “Having exceeded the level of five million unemployed workers, each job that is maintained is a crucial and inalienable milestone,” argues the company.

The real estate company accompanies its payment proposal with a feasibility plan that basically involves the sale of assets, mainly land and housing, for collaborating with banks in real estate advice and for resuming the promotion of flats from next year. At this point, he acknowledges that “they will be sold at 40% and 50% below the prices handled in 2007”.

VIABILITY PLAN WITH SALE OF ASSETS

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The real estate company presents its proposed plan and payment schedule four years after it was declared in bankruptcy proceedings, one of the largest in the current crisis, in November 2009 (later the court considered that the insolvency reference date should be a year before).

In addition, the registration of the agreement takes place while it is expected that the common phase of the contest will conclude this December, once the judge resolves the last bankruptcy incidents of the report that the administrators presented at the end of 2010.

According to the documentation sent to the court, Mango closed 2012 with a net loss of 346.8 million euros , an amount that doubles the ‘red numbers’ of the previous year. Revenues totaled 4.87 million , compared to 85.1 million in 2011 and 1,373.5 million billed in 2008.

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