The European office supplier has declared bankruptcy after various takeover attempts fell through.
According to El Confidencial, the company has presented the declaration of insolvency to the National Securities Market Commission (CNMV).
The most recent takeover talks were with Netherlands-based Staples Solutions, but these collapsed last month. Therefore, in order to clear the debt that the company has with various other parties, such as BBVA, Banco Sabadell, CaixaBank, Banco Santander, Bankia, and Kutxabank, Adveo announced its protection mechanism, under the Bankruptcy Law, allowing it to “seek alternatives to avoid the bankruptcy of creditors within a period of four months.
Shares in the company fell by 27 percent in the Continuous Market following this announcement. Yet the mechanism “has not paid off,” El Confidencial states, quoting Adveo’s statement in which it explained: “Despite the maintenance of negotiations with investors in order to achieve a refinancing alternative, the banking entities holding the entire financial debt of the company […] have formally informed the company of the anticipated expiration of the amounts pending under the aforementioned Restructuring Agreement, proceeding also to its liquidation.”
“As a result of the foregoing, the Board of Directors, in order to preserve the business continuity of Adveo and protect the interests affected, has agreed to voluntarily request, before the competent Commercial Court, the declaration of bankruptcy creditors, with the aim of continuing to seek within it a satisfactory agreement that ensures the safeguarding of the rights and interests of its workers, creditors and shareholders, as well as the continued management of Adveo.”
In response to this news, the CNMV suspended the price of Adveo, following its declaration, Expansión reports.
