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MADRID, March 31 (Reuters) - Spanish engineering firm Isolux Corsan said on Friday it had entered formal talks to avoid insolvency and gain time to secure a liquidity lifeline to reactivate the company's operations.
Under Spanish law, companies can enter into pre-insolvency proceedings that give them up to four months to reach an agreement with creditors to avoid a full-blown insolvency process and a potential bankruptcy.
"The decision taken by the board does not affect the maintenance of the group's activity or the capacity to carry out operations, in particular the projects initiated in recent months, and protects it legally for the duration of the ongoing negotiations", Isolux said in a statement.
Reporting By Andrés González; Writing by Jesús Aguado; Editing by Angus Berwick