Holaluz financial crisis left ICO on the hook

The group is worth less on the stock market than its debt, which is 70% “backed” by the Official Credit Institute.

A crisis Hello Luzwhich could lead to largest pre-bankruptcy bankruptcy still in the renewable energy sector and new electrical competitors in Spain, could have a negative impact of millions of dollars for Official Credit Institute (ICO).

As follows from some documents of Holaluz, which remains suspended from trading until the submission of audited accounts for 2023, a significant part of the company’s debt, in particular “almost 70%” of all net debt “is backed by ICOs”.

Holaluz implies guarantees for all types Debt instrumentsfrom “long-term loans” to other “credit lines” and “affirmations” (guarantees of payments to suppliers) with maturities between 2024 and 2027 and “with lenient terms.”

Relations with ICOs have a long history. As was the case with other companies during the height of the pandemic, a government agency dependent on the Ministry of Economy, Trade and Business acted as financial cushion and source of liquidity for Holaluz after the Covid outbreak. But the dependence remains.

According to the latest data provided by Holaluz, in the absence of an audit The company’s net debt at the end of 2023 amounted to 58.8 million euros.Debt rose sharply between 2022 and 2023, up from 44.3 million in 2021.

“Roof Loans”

If what the company calls roof loans, the debt will be much greater. Specifically, it would increase from 46.9 million in 2021 to 62.3 million in 2022 and 65.4 million in 2023.

roof loans are financing that the company itself provides to customers to install photovoltaic panels on their roofs (hence the name). In an effort to increase self-consumption, these loans skyrocketed. From 2.6 million in 2021, it has risen to 7.5 million in 2022.

In 2023, as own consumption fell, the figure stabilized at 6.6 million. The company considers this to be future income and therefore a discount on its debt.

Everything is in the short term

Holaluz’s debt is a serious problem when put into perspective. Right now This is higher than the company’s value on the stock market.. On Tuesday, before the company was suspended from trading, the group’s capitalization was just 56 million euros.

In addition, of the total debt, the largest portion (57 million) is due to short-term debt. And of this figure, a very important part (19.8 million euros) consists of bills of exchange that must be returned in the first half of this year.

Oxygen until July

In April, the company managed to issue seven million worth of new notes due in July this year, giving the group financial oxygen until then.

Charlotte Peafirst executive director and co-founder of the group with Ferran Noguet And Oriel Vilaare the largest shareholders of the company with shares of 14.6%.

Unqualified EY report

Yesterday was a nervous day for Holaluz. The company remained suspended from trading pending the auditor’s report: HELLO. The company told BME Growth it was delaying the filing of its 2023 accounts with the associated audit report until May 9 because the auditor did not have “additional administrative procedures.” However, late yesterday evening the company submitted an audit report in which does not contain qualifications. The group posted losses of 26 million in 2023, five times more than in 2022, according to Holaluz.

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