GAM defers debt repayments to fund international growth

Spanish rental company GAM has negotiated a year-long deferral of debt repayments totalling €118 million from 19 lenders. The deferrals will allow it to continue to fund its international expansion in South America and elsewhere.

GAM said the agreement covered 86.4% of its total lending. Repayments required for 2011 and 2012 now stand at €47.9 million and €58.6 million, respectively.

GAM said the new payment schedule was tailored to the business plan that it submitted to lenders in May last year, and which comprises three main aims: restructuring in Spain; diversification away from construction activity in Spain; and an accelerated international expansion.

It now operates in 14 countries and 30 depots outside Spain, employing 400 people in these areas. It has relocated around 7500 items of equipment to establish its international operation.

See right for a link to IRN's recent interview with GAM's chief operating officer, Carlos Araoz.