El Corte Ingles has managed to secure a deal to refinance almost three-quarters of its existing debt.
Spain’s largest privately-held firm, claim that €3.8 billion of its five billion euro debt will be coming from its lenders as they have agreed to refinance it. These new loans will now be maturing in 2021.
With the ongoing austerity measures that have been going on in Spain, El Corte Ingles has been hit hard. The falling sales have also taken a huge effect as they have had to cut their prices to compete with the discounters. The group also has assets worth €7.4 billion and their annual revenues are around €15 billion.
It is reported that they have said it will hopefully persuade the other banks to refinance the remainder of its debt.