Things take a turn for the worse for Spanish fibre producer
05/12/2014
The company, which has a production plant in Miranda de Ebro in the north-west of Spain and a workforce of around 230 people, went into administration in August 2013. Its fortunes looked to have revived earlier this year when investment group Praedium, owner of polyamide 6.6 brand Nylstar, announced it was taking over.
Montefibre had debts reported to be around €30 million, but Praedium said in October it had reached an agreement with creditors to pay back 40% of the money owed over a period of seven years, paying nothing in the first three years. The biggest creditor, energy company Endesa, was reluctant to accept the deal on offer, according to local media, but had agreed to the terms in the end.
Now reports say Endesa has changed its mind, which means Montefibre is not yet able to restart production. Praedium has also announced compulsory redundancy for 170 workers. It said these people would be entitled to 20 days’ pay for each year worked and would receive priority when the company begins recruiting again if production starts next year. Praedium had originally intended to start making fibre again at Montefibre in September 2014. They will be able to come back on the same terms and conditions.
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