CNA Group said that “commitment to continuity” of Edessa Industrial working on a feasibility plan to refinance debt and “reduce its structural costs.”
In this regard, said that “the new business plan is based mainly on the brand Fagor, the sales force nationally and internationally, as well as R & D, and keep only the production proved to be economically efficient and sustainable. “
In a statement, the Catalan group, which acquired the production assets Fagor 2014, confirmed that on the 30th Industrial Edessa filed a preconcurs. As explained, after the acquisition of the production unit, Edessa Industrial appliance manufacturer Fagor brand, identified “the investment required to achieve breakeven at the operating account was much higher than the expected. “
“Production costs structure and manufacturing are very high. The balance would only be achievable with a volume of sales difficult to achieve in the near future,” said the group, which stressed that since acquired Fagor production assets has injected more than 20 million additional investment compared to what was initially projected.
In this context, he added, “financial tensions have led to the reduction of circulating bank.” For these reasons, he said, Edessa Industrial filed Friday June 30 a preconcurs under Article 5 of the Bankruptcy Act, with the aim of “having enough time to restructure the company and the business” implying reach new agreements with financial institutions “to define a new business structure stable and sustainable
CNA commitment to “continuity” because, as he said, “rely on brand strength” and is working on a feasibility plan to refinance debt and reduce its structural costs.
The group explained that “the new business plan is based mainly on the brand Fagor, the sales force nationally and internationally, as well as R & D, and keep only the production proved to be economically efficient and sustainable” .