The Biotech Company Euroespes Enters Bankruptcy Proceedings

Euroespes, against the ropes. After the end of the three-month period to continue negotiating with its creditors, the biomedical company announced its decision to enter bankruptcy proceedings.

“Given the impossibility of reaching an agreement to restructure the debt of the company and its subsidiary Euroespes biotechnology in the terms proposed by the Board of Directors and given that pre-bankruptcy protection expires on October 21st, the Board has taken the decision to request the declaration of voluntary bankruptcy,” as expressed by the company in the statement sent to BME Growth.

On April 24th, Euroespes requested a pre-bankruptcy of creditors. The biomedical company had a debt of more than €5 million. Therefore, the board of directors decided to launch debt restructuring negotiations with its creditors.

The company alleged that the main reason for promoting the process was due to the fact that the planned cash had suffered a delay in generating additional resources and, on the other hand, the renegotiation of the debt had also failed.

The accounts for the first half of last year presented by the company recorded a debt of more than €5.1 million. The company had two pending mortgage loans with Santander and Sabadell, as well as ICO loans with Abanca, Caixabank, and Bbva.

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The capital of Euroespes is distributed between Moira Capital (44.18%), Ramón Cacabelos (18%), and Caja Rural de Soria (5.4%)

On July 14, the biomedical company demanded an extension of the pre-bid. “Consent for the extension has been requested from the creditors that represent more than 50% of the liabilities; it will then be presented to the Commercial Court of A Coruña,” according to the company in a statement sent to the stock market regulator.

Therefore, once the extension period has passed, Euroespes has been forced to enter bankruptcy proceedings. “The application will be presented within a period of one month in the competent court of A Coruña,” indicates the biomedical company in the recent statement to BME Growth.

Currently, the capital of Euroespes is distributed between Moira Capital, which controls 44.18% of the shares; Ramón Cacabelos, founder of Euroespes, holds 18% of the capital directly and indirectly, and Caja Rural de Soria holds 5.4%. The rest are minority shareholders.

The company based in Bergondo (A Coruña) was listed on BME Growth for twelve years, but as a result of its entry into bankruptcy proceedings, the regulator has suspended its listing. Before the suspension, its shares were trading at around 35 cents, with an annual drop in value of 32%.

The company works with protocols to predict the individual risk of suffering from a series of diseases linked to the CNS and vascular system. These include Parkinson’s, Alzheimer’s disease, senile dementia, and multiple sclerosis.

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(Featured image by viarami via Pixabay)

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First published in PlantaDoce. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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