GAM secures debt agreement with banks

Spain's GAM Alquiler announced on 29 March that it had agreed a debt repayment schedule with 20 of its banks and financial providers representing almost 94% of its debts. The schedule will see it deferring the vast majority of its debts to the years 2015, 2016 and 2017.

GAM will be required to make repayments totaling €26 million in the 2012-14 period but rising to €200 million in 2015 and then €82 million and €61 million in 2016 and 2017, respectively.

The restructuring deal also sees GAM's debt reduced by €30 million through the termination of some leases and loans and a further reduction of €59 million by the conversion of debt from four creditors into GAM shares, subject to certain conditions.

GAM said the restructuring represented a milestone for the company and would give it "the financial stability necessary to meet its future challenges: consolidation and growth of the international business and improving margins in the domestic business."

The reference to consolidation in the statement might imply that the long-running merger discussions with HUNE, Spain's second largest rental company, could be continuing.