Tubos Reunidos has warned that the situation is "very complicated" and does not rule out suspending activity if they do not find investors
At a meeting with the Amurrio Factory Works Council, the management has reported the suspension of the feasibility plan and collective dismissal, and from now on, all decisions of the company will be taken by an insolvency administration.
Stock image of a protest at the Tubos Reunidos factory in Amurrio. Photo: EFE
The management of Tubos Reunidos met this Wednesday with the workers' representatives at the Amurrio plant and explained that ifthere were no suitable conditions for someone to invest, the creditor competition could lead to the cessation of activity and the termination of all employment contracts.
The appointment comes after Tubos Reunidos applied for a voluntary creditor competition on Monday. Management has sent a letter to employees warning that the company will face a "very difficult" situation in order to maintain its activity during the competition.
The Directorate recalls that the Insolvency Act obliges the Company to apply for this process if, within the next three months, it is expected that the company will not be able to fulfil its payment obligations on a regular and timely basis.
In this case, this immediate insolvency forecast is projected "both in terms of financial debt (EUR 263 million) andcredits arising from the normal functioning of the activity, including payroll and social insurance ".
According to the company, the problem is not just financial debt, but the current production model is"very deficient , causing losses and increasing debt that cannot be repaid. "
The management has stressed that the first step in implementing the feasibility plan was a social agreement that has not been reached, adding that the strike has paralysed production "indefinitely": "In this context, no one is prepared to grant more creditor invest in Tubos Reunidos. "
Suspension of EREs
On the occasion of the creditor competition, the Employment Regulation Dossier (ERE) announced for the dismissal of 242 persons will be suspended. It will now be the insolvency administration that designates the court that decides on the application of the labour measures, which may be "stricter" to limit the economic deterioration of the company.
The management concludes by saying that it is working to create the necessary conditions for creditors and investors to maintain activity and jobs and to be able to pass the creditor competition, yet it has called on all parties to be accountable .
"If we do not create the necessary conditions for someone to be willing to invest in Tubos Reunidos, unfortunately the competition could leadto the cessation of activity and the termination of all employment contracts, "he warned.
Response from workers' representatives
At the end of the meeting in Amurrio, the trade union delegates explained that they had requested the documentation to apply for the competition but had not been handed over to them.
The LAB delegate, Oier Bidaurratzaga, has said that the meeting is "disappointing"and that they have left "sad." They have come to explain what has been presented to the National Securities and Exchange Commission (CNMV) and have told us that it is no longer upto them to decide. "
Forhis part, the representative of the ESK trade union, Gorka Abascal, has lamented that they have not received a clear answer: "We do not know very well what they have come for. "
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