Time running out for Coronel Tapiocca

Jaime Bergel, president of the private equity firm, has made numerous unsuccessful attempts to convince Bancaja, CAM, Caja Castilla-La Mancha and EBN to refinance the company's €30m debt.

Bergel requested the total debt be reduced by at least 40%, but his efforts are yet to bear fruit.

On May 27th 2010, the business was granted four months to negotiate with its lenders without entering into bankruptcy proceedings, under Article 5.3 of Spain's Insolvency Law.

The firm's troubles began to take shape in 2009, when it reported a turnover of €27.4m - a 25% reduction on the previous year - and a loss of €13.5m, following Gala Capital's closure of 122 of its outlets and the dismissal of almost 500 employees.

Coronel Tapiocca was acquired from 3i in 2006, after 12 years with the British investor.

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• Topics
• Southern Europe
• Restructuring
• 3i