The Commercial Court No. 3 of Las Palmas de Gran Canaria has validated the restructuring plan for the company owning Beatriz Hotels in Lanzarote (Inparsa), submitted by the investment fund Blantyre Capital.

In a statement, the London-based firm detailed that the plan involves converting debts into a majority stake in Inversiones y Parcelaciones Urbanas SA (Inparsa). This process is supported by “the vast majority of the company’s creditors”.

The main measures of the plan include the full capitalisation of Inparsa’s unsustainable debt, an extension of the deadlines for the mortgage charges affecting the Hotel Beatriz Costa (in Costa Teguise) and the Hotel Beatriz Playa (in Puerto del Carmen), as well as an additional capital injection for the renovation and professionalisation of the business.

Miguel Cebrián, the investment director at Blantyre Capital, asserts that this restructuring plan for the two Lanzarote hotels ensures the retention of their jobs.

“From now on, with an active management strategy and an ambitious investment programme, we will focus on creating sustainable value for all our stakeholders. Furthermore, the legal certainty provided by this ruling (from the Commercial Court) reinforces Spain as a serious and modern jurisdiction for channeling investments,” he argues.

According to Blantyre Capital, “prior to the restructuring plan, Inparsa was a over-indebted company that had been forced to delay the repayment of its debts multiple times since 2013 and had compelled its creditors to various financial restructurings in 2012, 2015, and 2020.”

“Subsequently, in November 2023, the company again became unable to meet its payable debt,” it added.

Blantyre Capital has experience in the hotel business, managing around twenty establishments in Spain, Italy, the United Kingdom, and Germany, employing 1,500 staff.

Following the ruling by the Commercial Court No. 3 of Las Palmas de Gran Canaria, Inparsa becomes the fourth company – after Celsa, Naviera Armas, and Grupo Rator – to receive approval for its non-consensual restructuring plan presented by the majority creditors in accordance with the terms outlined in the Insolvency Law of 2022.

“This resolution strengthens legal certainty in corporate restructuring processes, providing assurance to both creditors and companies regarding the validity and effectiveness of the agreements reached,” affirms Blantyre Capital, which has engaged Cuatrecasas as legal advisor for the operation.