Large Spanish Steel Group

Case Study

By the Numbers

In April 2021, Gordon Brothers entered into an agreement to purchase up to 40,000 tonnes of steel inventory from a large Spanish steel group (the Group).

The Group is negotiating a debt restructuring deal with its lenders. To support its liquidity during such process, the Group has raised temporary funds against its assets. As part of the agreement, Gordon Brothers will purchase the new production of stock on a weekly basis with a repurchase option that will provide the Group with additional liquidity for 12 months.

This is the third transaction with the Group in less than a year. Last year, Gordon Brothers provided financing through the sale and leaseback of machinery and equipment. The assets included in the deal belong to the metal recovery company of the Group and are mainly scrap handling machinery such as a fragmentiser plant, shears, wire granulating lines, material handlers, forklift trucks and similar equipment.

Gordon Brothers has significant experience in the steel industry in Spain and Europe, having undertaken several valuations and investments in various company restructuring proceedings. Our regional and sector expertise allowed us to complete the valuation of these assets in an accelerated timeframe and provide an efficient source of liquidity to the Group.