The Commercial Court number 1 of Tarragona approves launching the express sale of the engineering group Navec. In bankruptcy proceedings since September, the company dedicated to the engineering, manufacturing, assembly and maintenance of industrial plants has been negotiating a restructuring with creditors since before the summer that did not come to fruition. Therefore, the magistrate has authorized the bankruptcy administrator to schedule an auction of the assets for the first week of November.
The Tarragona-based conglomerate, Repsol Puertollano’s main contractor and which also works for firms such as Covestro, Navantia, Enagás and Dow, has already attracted the interest of both industrial groups and investment funds. Hence, the bankruptcy administration, in the hands of the RCD firm, has chosen to request an extrajudicial sale. Judge Santiago Aragonés authorized the auction last week.
Now, the firm is in the process of designing the bid, something that will be closed in the coming days. The sources consulted by elEconomista.es They explain that an auction will be organized for the entire firm as well as for different assets, mainly segregated by business units, although it is not ruled out to prepare the lots geographically. Thus, the contest is scheduled to take place between November 4 and November 8.
In this way, a quick solution is sought to make the company viable. given the expressions of interest received in recent weeks. This future could be with the sale of packages or the entire production unit.
The auction will be held in a climate of tension with the unions following the employment regulation file (ERE) presented. An adjustment that could disaffect workers in the coming weeks depending on the wishes of potential buyers. However, the Navec works council in Puertollano – which works mainly for Repsol – has called an indefinite strike in protest against the measure.
The financial reality of Navec
The competition and future sale of Navec is the culmination of a process of financial tensions that has been going on for years. In 2022, the company requested a loan from Cofides of 9 million euros for companies impacted by the coronavirus. However, his situation did not improve and before the summer he tried to address a restructuring with the bank that did not bear fruit.
According to the latest financial statements, in 2022 it recorded sales of 112.7 million euros and a profit of 11,790 euros. However, it had a negative working capital of 6.3 million euros, which already indicated the hole it had in its balance sheet.
Besides, The auditor (EY) warned in his report of several deteriorations that had to be addressed and that triggered the group’s losses.. To begin with, it warned that the company was not recording amortization expenses worth 3.9 million euros during the last six years, which caused a balance sheet swollen by 27.6 million and losses – both from previous years and from 2022- to which the same amount had to be added.
On the other hand, it warned that there were 6.6 million euros of deferred taxes that Navec aspired to compensate, but that EY indicates that they should deteriorate due to the difficulties already experienced.
The two main shareholders of the Tarragona-based company are the funds Baring Iberia II (38.8%) and Tikehau Capital (21.6%), which inherited the participation of having financed the purchase of the company from Baring itself.
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