Deoleo (Carbonell and Hojiblanca) sinks in stock market and marks another historical minimum

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The sinking stock market that lives the Spanish oil Deoleo was aggravated in the session on Wednesday with falls of more than 14%, to mark a new historical minimum when trading at four cents. The company – owned by brands such as Bertolli, Carbonell, Carapelli, Hojiblanca or Koipe – already lived a black trading day on Tuesday, losing more than 11%, in a reaction from investors to Moody's decision this week to lower its note to the second lowest possible level, considering that its current capital structure is "unsustainable".

The analysts of the rating agency warned that there is a growing risk "that Deoleo needs to restructure its debt or request an extension of its maturities, which would cause losses for its financial creditors."

The downward trend in the company's stock market occurs in parallel with the worsening of its economic results, since in 2018 it recorded losses of 291 million euros, after adjusting the value of its assets downwards.

As a result of this review, the company also entered into technical bankruptcy, a situation that it intends to exit through a capital reduction of 137.7 million.

The transaction will be submitted to a vote of the shareholders at the meeting next June 3.

Deoleo is currently controlled by British investment fund CVC Partners, which owns 56% of the capital and entered the company in 2014, when it paid 38 cents per share. .

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