Prisa feels the squeeze

August 12, 2013 10.56 Europe/London By Chris Dziadul

PrisaSpain’s Prisa has run into serious financial difficulties and currently owes banks more than €3.2 billion.

However, reports El Condidencial, this is by no means the only problem facing the company, with the latest set of accounts submitted to the CNMV showing that it has also guaranteed €313.5 million to third parties.

Most of this amount is for bank guarantees secured for contingencies related to securing football rights.

Indeed, the company has had an almost endless series of disputes with Mediapro about the latter.

Prisa has also guaranteed €33.49 million to Cisco Systems linked to the development, leasing and rental of Canal+ decoders, including the iPlus.

Despite these problems, Prisa has already secured 88% support from creditor banks for a restructuring plan, up from 72% as of June 4 thanks to the addition of Banco Santander, CaixaBank, Bankia, HSBC, Natixis and BNP Paribas to the list.

On the other hand, Prisa admitted in the last conference call that €25 million of rthe €80 million credit line accompanying the refinancing deal had already been drawn.