The Opposition of Banks Complicates the Restructuring of Fashion Firm Mirto

✦ Meridian Analysis

Mirto’s latest court ruling marks the end of a judicial restructuring that had sought to extend a debt‑refinancing plan to the banks that finance two of its subsidiaries. The Madrid Court annulled the extension for Creaciones Mirto and Exigency, leaving the parent company’s plan and the Liza Difusión plan intact. The group had secured court approval for four separate plans that covered the parent and the three subsidiaries, each proposing a full repayment of €27 million of debt without capital relief, a four‑year grace period and amortisation schedules stretching to 2032. The banks—Santander, Ibercaja, BBVA, CaixaBank and Abanca—had objected to the plans. The court accepted those objections for the two subsidiaries, removing the banks’ obligations under the plans and reducing the debt to be refinanced to €16 million, while the parent plan remains in force. Mirto’s experience—where a 20% sales lift was offset by increased working‑capital investments for a Mexican market push and a refusal by several banks to renew short‑term credit lines—illustrates the situation. The case also shows the role of non‑bank creditors, such as the leasing company Inversiones Cendal, whose support was crucial in securing initial court approval. What remains to be seen is whether Mirto will succeed in negotiating a new consensual plan with the banks for Creaciones Mirto and Exigency. The court decision has not disclosed the identity of advisers, or a timetable for implementation. The group’s management has indicated that it is exploring options.

The Meridian Weekly