Tuesday, February 7, 2017

Soares da Costa manages to recovery in spite of the lead of the GBD – Jornal de Negócios – Portugal

The Sociedade de Construções Soares da Costa has managed to approve its recovery plan. The vote, reported by the Public, shows that the main creditor, the General Box of Deposits, was not favourable, but ended up voting for won. The public bank has to be reimbursed for a debt of 179 million euros, that will be forgiven in part on the scope of the plan. The bank will, still, receive in lieu a bill of 7.9 million euros of Sonangol. The plan has not yet been approved by the judge or passed in res judicata, by which it may be contested.

“it Was above all the mobilisation of suppliers and workers that allowed this development process can go forward,” admitted to the Public the judicial administrator Peter Pidwell Silva.

In the portal Citius, there is still no information about the vote. The last information that came in relation to the company is published in the December that pointed to a further 30 days for negotiations with creditors. The order of entry into recovery was made in August, at which time the group had wages in arrears in Portugal, Angola and Mozambique, and their markets.

As the Business had already given account, the list of credits exceeds 1.4 billion euro but the receiver only recognized about 700 million. Of these, the CGD was responsible for 179 million euros, by the word of the public bank, it was important for the approval.

Just that, Public, the Box voted against the PER of the company led by Joaquim Ribbons. That was against the majority. The position favorable to the plan was given by 51,08% of the voters, of the total of 98% of the creditors voted. The BCP and Millennium Atlantic, where the Portuguese bank, which holds 22.5% of the capital, are also on the list of main creditors on the PER, to take place in the District of Porto – Vila Nova de Gaia.

CGD receives the invoice of Sonangol in lieu

THE CGD voted against the plan, which provides for the forgiveness of 60% of the total credit granted in euro or dollars or 20% when the debt is incurred by the company in kwanzas or meticais. The payment of a large remaining share (25% of total debt in euro and dollars or 65% in kwanzas and meticais) will be implemented over 18 years. These are the information of the plan that was available for voting until January 25.

In the case of banks with debt secured by real estate or other goods, some of these guarantees are provided to financial institutions. One of the examples is a bill which Soares da Costa has received from Sonangol in the amount of 7.9 million euros, which will be given in lieu to the Portuguese bank.

Soares da Costa Construction proposed to the creditors, the forgiveness of debt total to the subordinate claims, the payment of debts due to suppliers in five years, associated with a forgiveness of debt, partial to the payments to be made in euros.

The workers are able to recover almost all of its debt to 45 days after approval of the plan, even with a salary to be paid in instalments. In cases where there is termination of the employment contract, the payment of compensation is done in five years. According to the official website, the company has 3.785 workers, 60% in Angola and almost 20% in Mozambique, and there was a collective dismissal of 500 employees in the past year.

In relation to the Tax debt until the end of 2015 was the target of the access to PERES, the program deferred income tax the Ministry of Finance has opened in the past year, with the debt later will be paid in 12 years.

“the success of The plan depends on the implementation of measures of operational restructuring, including the adequacy of the structure to the current size of the business of the company. The costs of the restructuring process are estimated at around € 45.000.000,00″ Proposal for a Recovery plan

The loan Millennium Bank Atlantic

These pardons of the debt are required because the sale of assets and operational restructuring are not sufficient. The plan approved by the creditors passes by the sale of assets: the business in Mozambique and 4% of the concession auto-estrada Transmontana.

“in Addition, the success of the plan depends on the implementation of measures of operational restructuring, including the adequacy of the structure to the current size of the business of the company. The costs of the restructuring process are estimated at around € 45.000.000,00 (forty five million) for the charges relating to the restructuring and strengthening of the treasury”, indicates the plan available on the site.

For this, the Bank Millennium Atlântico, S. A., held a 22.5% by the BCP, grants a line of financing of the restructuring and a line of bank guarantees. The greater part of the first line will be used to cover the costs with the adjustment of the structure in Portugal and the transfer of services “backoffice” to Angola.

Plan puts Soares da Costa centered in Angola

so, with the approval of the plan, the Soares da Costa will be a different company, without Mozambique, and with a presence more discreet in Portugal. Incidentally, the change has already started in the last few years. The company targeted by this PER is the Sociedade de construção Soares da Costa, whose main shareholder is the GAM of the entrepreneur angolan António Mosquito, with 66,7% of the company. The company that was separate, in 2014, the SDC – Investimentos, Manuel Fino, the owner of 33.33% of the share capital.

The plan provides that the operational focus spend even more to Angola, where is the main shareholder – in fact, the Mosquito was to buy the 33,33% of the share capital that does not holds to SDC but the agreement fell with the PER.

The business in Portugal will be the target of restructuring, as can be seen by the details of credit of $ 45 million from the Millennium Atlantic. In addition, the plan provides that there is real estate data as secured loans that are either sold or delivered as dation, and the majority relate to land in Portugal: in this Case, and in Funchal, the BCP, or in Azeitão, to the BIC.

Insolvency would take 15 years

In the document, were given several justifications for the PER to be accepted by the creditors, in spite of the difficult conditions, especially for banks. One of the arguments for the approval of the plan, not touched the CGD, was that the settlement would be time-consuming.

“In the absence of the support of the creditors to the recovery plan, it becomes certain how the settlement scenario abrupt of the assets of the company. This scenario will characterize will be, exclusively, by the sale of the assets and rights of credit customers”, stresses the company, directed by Joaquim Ribbons, adding that, “it is important not to forget that in a scenario of insolvency, the odds of the creditors to be paid in the short to medium term are virtually nil”.

“Moreover, it is important to bear in mind that a bankruptcy proceeding with the breadth that this would have, would be subject to a procedure of settlement very time-consuming, with a prospect of recovery of the percentages above considered at the end of 15 years”, it also adds to the document.

THE PER has yet to be recognized by a judge, and then become final, when it is no longer possible, the presentation of oppositions or objections.

SDC recognizes losses in the Soares da Costa Construções

With the approval of the plan, the office of communication of the Soares da Costa was satisfied in statements to the Public: “The Soares da Costa welcomes the approval by clear of the plan of reconstruction presented. In this way we believe that it is possible to register a brand name in centennial and has a great impact on the economy and creating jobs”.

Joaquim Ribbons is the executive chairman of the construction company that, in 2007, had come to be controlled by Manuel Fino (in the photo). With the restructuring of 2014, the entrepreneur went on to have only 33.33 percent of the construction company, getting with the SDC, which comprised the concessions and infrastructure.

SDC –Investimentos is also changing, and may leave the hands of Manuel Fino. The society is under a public tender offer launched by their managers, António Castro Henriques and Gonçalo Santos, is in the sale of the participation in the concession area and has been recognized a negative impact in equity of € 33.5 million is in the position of SDC in the construction company.


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