PradaGayoso counsels Viña de Gaitanejos on changes to its creditors’ agreement

The new plan guarantees the viability of the company in the face of the distress resulting from the pandemic

The Commercial Court (Juzgado de lo Mercantil) No. 5 of Madrid has approved the amendment of Viña de Gaitanejos creditors’ agreement, PradaGayoso firm acting as counsel for the company.

The change responds to the need to guarantee the viability of the company and to maintain employment in an especially adverse economic environment, marked by the impact of the pandemic.

66% of outstanding unsecured creditors accepted to amend the agreement, the changes consisting of a relief (quita) of 97% of the amount due and a four-month deferral of payment (espera).

Viña de Gaitanejos manager Juan Valentín Gómez de Castro stated that ‘the viability plan and the payment scheme we have submitted demonstrate that, with the new agreement, we will be able to continue to meet our commitments to our creditors, just as we have since 2013.’

Lawyer, economist and PradaGayoso partner Javier Marquina considers that the agreed scheme is the most satisfactory solution for all the parties involved: ‘Given the current economic situation, a liquidation scenario would have entailed serious damage for the company, the creditors and the employees.’