Spanish bank Banesto has taken control of rental company HUNE and will try to restructure its €500 million of debt.
The bank, which is one of HUNE's biggest creditors at €125 million, has acquired a 72% shareholding in the business from its senior managers and has now engaged turnaround consultants Noraction (part of the Norgestión group) to undertake restructuring.
According to Spanish financial website Cotizalia, HUNE's two senior managers, chief executive Juan Dionis and finance director Pedro Antón, have left the company. The business is now being run by Alejandro Rodríguez-Carmona, managing director of Noraction, and under the chairmanship of Emilio Cebamanos, the manager employed by previous HUNE owner, private equity firm Advent.
Cotizalia reports that Banesto's initiative will strengthen HUNE's equity by €200 million.
Many of the company's existing senior managers, including Pedro Torres, who manages the aerial platform side of the business, are still running the business.
The move by Banesto follows the decision by Advent in December last year to sell its 72% stake in HUNE to the rental company's management team for the nominal sum of €1.
HUNE, one of Spain's largest rental companies alongisde GAM, has been suffering since Spain's construction market entered a deep recession. The European Rental Association estimates that the Spanish equipment rental market fell in value by 35% in 2009 and that it will fall by a further 20% this year.
HUNE itself reported revenues of €124 million in 2009, down 40% compared to 2008.