The Commercial Court number 14 of Madrid has ruled in favor of the creditors of the Oasiz shopping center, in Torrejón de Ardozthe largest in the Community of Madrid, who challenged the restructuring plan proposed by the parent company Compañía de Phalsbourg. “The company is unviable from an economic and financial point of view and is destined for liquidation,” the ruling states. Sources managing the complex assure that there is currently a plan “perfectly approved and judicially approved, and it is already in operation.”
Oasiz – which has been managed by Eurofund Group since March – was inaugurated in 2021, five years after the works that built the 250,000 square meter shopping center began. Its operation was delayed due to various complications, in addition to the arrival of the pandemic, so debts began to pile up. In 2023 and faced with the impact of invoices, a creditor filed for bankruptcy and began working to carry out a restructuring of the company and find solutions to this problem.
In October 2023, Compañía de Phalsbourg and Carlotta, the subsidiary company, informed the commercial court of the start of negotiations to try to achieve a joint restructuring plan. The Phalsbourg Company proposal, among other aspects, provided for extending the effects to the guarantees granted by the parent company to cover part of the obligations of the Spanish subsidiary.
This is the plan to which the judge refers in the final ruling and which has ruled in favor of Oasiz’s creditors to challenge the restructuring plan. As a consequence, the reporting creditors plan to reactivate the judicial process against the parent company, asking it to respond for the debt; financial commitments amount to up to 265 million, according to ‘El Confidencial’.
“Non-viable”
The ruling warns that “a series of circumstances arise that lead to the conclusion that Phalsbourg’s restructuring plan does not offer a reasonable prospect of avoiding bankruptcy and ensuring the viability of the company.”
Thus, the magistrate points out that «Phalsbourg is a company that has no income or resources to develop a business activitynor the ability to obtain them in the short or medium term, which leads to the conclusion that the company is unviable from an economic and financial point of view and is destined for liquidation.
The other plan, currently in force, It was presented in January of this year by Cale Street, Carlotta’s main creditor, to take control of the complex located 20 kilometers from Puerta del Sol and this was the one that transcended. In the proposal, the fund could take 75% of the company’s voting rights, while Compañía de Phalsbourg and another partner (Alcadasorg) would obtain 25% of the remaining ones.
«In this regard, it is necessary to reiterate that Carlotta’s restructuring plan is perfectly approved and judicially approved, and is already in operation. For this reason, the viability of the Oasiz shopping center, operated by Carlotta, is not compromised and, in no case, said refinancing would have been ‘knocked down’,” they determine from Cale Street.
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