Spanish rental company GAM has signed an agreement with 11 financial institutions to restructure its debt.
A statement said the deal reduced its debt to €120 million. The financial institutions involved accounted for 92% of GAM’s total liabilities.
The statement continued: “The company has, through this agreement, strengthened its balance and remarkably improved the situation of its assets. This will allow it face the future with confidence and to develop its business in a more efficient way.”
The business had been adversely affected by conditions in its domestic construction market, which contributed to a 14% fall in revenues in 2014 to €104 million.
Despite diversifying into international markets, particularly Latin America, eastern Europe and the Middle East, GAM suffered losses of €29 million in the 2014 financial year.
Altogether the company has more than 1000 staff in 14 countries. It also has a fleet of more than 30000 machines in total.
In addition to developing markets outside Spain, GAM has in recent years adapted its cost structure in Spain to address the downturn in the market.
The statement added: “The agreement sets the continuity of the current management team as a necessary requirement to develop the established business plan.”
IRN understands that under the agreement, GAM can make further investments in the future as long as the total debt remains at or within its current level.