Duro Felguera proposes 100% debt reductions to Santander, Sabadell, Asturias, and Algeria to save itself.

The engineering firm controlled by the Prodi group, with Sepi willing to extend maturities of 120 million euros until 2035, presents a viability plan that includes an estimated litigation cost of 980 million euros.

The viability plan that Duro Felguera sent to its main creditors yesterday, with the aim of harmonizing its debt and avoiding bankruptcy, is subject to significant sacrifices, mainly from banks, the Principality of Asturias, non-strategic suppliers, and the company's foreign customers .

In a lengthy document sent this morning to the CNMV, Duro Felguera asserts that, for the plan to succeed, the group of banks led by Santander and Sabadell must assume the loss of the 25 million euros the Asturian company still owes them . The same applies to the six million euros lent by the Principality of Asturias.

In the case of the €120 million loan from the rescue fund piloted by Sepi, Duro Felguera proposes a new payment plan extended until 2035 , at which point it would repay the majority of that loan (€70 million).

One of the company's working conditions is that the court handling the pre-bankruptcy proceedings will approve the request for a reduction of contingent liabilities in Djelfa (Algeria) , where the company is facing a €413 million arbitration with state-owned Sonelgaz, following the failure of its last attempt to transfer the combined-cycle power plant project to Power China. In Algeria, as in Romania, guarantees worth €58 million have been executed, counter-guaranteed primarily by Sabadell. Duro Felguera wants the court approval to include a reduction of this risk, which is not an isolated one.

In the document sent to the CNMV, the company details that litigation on projects amounts to 980 million euros, with the most notable cases being Dubai (360 million), Algeria (413 million), Venezuela (160 million), Chile (5.6 million), and Morocco (8.9 million), among others.

"We have the commitment of the majority shareholder, the Prodi Group, leading the intensive work carried out over recent months and through its financial and commercial support," the company stated. The Mexican controlling shareholders intend to maintain management of the group following a corporate restructuring that includes the creation of a new vehicle to manage the company's healthy businesses. Prodi has committed to injecting €10 million, in addition to providing €15 million in guarantees, for Duro Felguera to operate in Mexico, focusing on the EPC, mining, industrial projects, hydrogen, and storage sectors.

The plan calls for profitability by 2027, with positive EBITDA of €2.6 million . The group's stock market value rose 17% mid-session.