Particle.news
Download on the App Store
3 ARTICLES
·
3w ago

Reduced State Loan Threatens Basque Bid to Rescue Talgo

With SEPI slashing its credit to €75 million, the July 15 meeting between the Basque lehendakari and the prime minister has become the deal’s last hurdle.

Image
Image

Overview

  • The Basque consortium led by José Antonio Jainaga agreed in February to pay €4.15 per share plus €0.85 in variable consideration for Trilantic’s 29.7% stake, even though Talgo’s stock trades 22% below that price.
  • Talgo faces over €400 million in debt—including more than €140 million maturing this year—and absorbed a €116 million Renfe fine that drove a €108 million loss in the past year.
  • SEPI initially pledged a €150 million rescue loan but then cut it to €75 million, insisting that the Basque group fund the €75 million shortfall.
  • The company is renegotiating its €1.4 billion German order and carries a €4 billion backlog that could unravel if the financing deadlock continues.
  • The PNV accuses Madrid of altering loan terms and dragging its feet, casting the July 15 bilateral talks as decisive for Talgo’s survival and regional industrial sovereignty.