July 23, 2020 / 7:16 AM / 17 days ago

Spain's Duro Felguera asks for public support to survive the coronavirus

MADRID (Reuters) - Troubled engineering company Duro Felguera (MDF.MC) said on Thursday that it will ask for public support to cope with the impact from the coronavirus pandemic, becoming the first listed Spanish company to do so after the government launched a program intended to boost corporate solvency.

“Duro Felguera is a strategic company and especially relevant for the industry in (the northwestern region of) Asturias,” the company said.

Earlier this month, the government approved new state-backed credit lines of up to 50 billion euros, including a 10 billion euro fund to potentially bail out companies in strategic sectors that are considered viable but are experiencing solvency problems due to the coronavirus.

The government also set a minimum threshold of 25 million euros to temporarily enter the capital of these companies affected by the COVID-19 pandemic through state-owned industrial holding company SEPI.

Companies which ask for support cannot pay dividends and bonuses for top management are restricted.

Reporting by Jose Elías Rodríguez; Editing by Ingrid Melander

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