Isolux Said to Hire Houlihan Lokey to Review Debt Structureby
Grupo Isolux Corsan SA hired Houlihan Lokey Inc. to review its debt structure, according to two people familiar with the situation.
The Spanish construction company will also continue working with Rothschild, said the people, who asked not to be identified because the matter is private. Rothschild was previously appointed to advise on potential mergers and asset sales, the people said.
Isolux is seeking to reduce a 1.6 billion-euro ($1.8 billion) debt pile and has said it wants to sell assets in Brazil and solar-energy plants. Other Spanish engineering and construction companies, such as Abengoa SA, are also straining to meet obligations after a decade of rapid expansion.
Macarena Ramirez Aparicio, a spokeswoman for Isolux in Madrid, and John Gallagher, a Houlihan Lokey spokesman, both declined to comment on the appointment. An official at Rothschild declined to comment on its role.
The Houlihan Lokey appointment was reported earlier on Wednesday by Capital Structure.
Isolux made 28 million euros of coupon payments to bondholders on April 15, Ramirez Aparicio said at the time. The company may have to buy out investors in its solar division for about 75 million euros by the end of May, according to a 2014 bond prospectus.