The future of the Oasis shopping center in Madrid, in the spotlight

Oasiz was inaugurated in 2021, five years after construction began on the 250,000 square meter shopping center. Its operation was delayed due to various complications, in addition to the arrival of the pandemic, so debts began to accumulate. In 2023, faced with the impact of the bills, a creditor filed for bankruptcy and began working to restructure the company and find solutions to this problem.

In October 2023, Compañía de Phalsbourg and Carlotta, the subsidiary, informed the commercial court of the start of negotiations to try to achieve a restructuring plan common to the two companies. The Phalsbourg company’s proposal provided, among other aspects, to extend the effects to the guarantees granted by the parent company to cover part of the obligations of the Spanish subsidiary.

It is this plan to which the judge refers in the final judgment and which ruled in favor of Oasiz’s creditors in challenging the restructuring plan. As a result, the reporting creditors are considering reactivating the legal proceedings against the parent company, asking it to answer for financial commitments which amount to 265 million, according to ‘El Confidencial’.

“Not viable”

The judgment warns that “a series of circumstances lead to the conclusion that Phalsbourg’s restructuring plan does not offer a reasonable prospect of avoiding bankruptcy and ensuring the viability of the company.”

Thus, the magistrate emphasizes that “Phalsbourg is a company that has neither income nor resources to develop a commercial activitynor the ability to obtain them in the short or medium term, which leads to the conclusion that the company is not viable from an economic and financial point of view and is destined for liquidation.

The other plan, currently in force, According to sources from this newspaper’s shopping center management company, he was presented in January this year by Cale Street, Carlotta’s main creditor, to take control of the complex located 20 kilometers from Puerta del Sol and he is the one who has transcended. In this proposal, the fund could take 75% of the company’s voting rights, while Phalsbourg Company and another partner (Alcadasorg) would obtain 25% of the remaining voting rights.

“In this regard, it is necessary to remember that Carlotta’s restructuring plan is fully approved and judicially approved and is already operational. For this reason, the viability of the Oasiz shopping center, operated by Carlotta, is not compromised and, in no case, said refinancing would have been ‘reversed'”, they determine from the Eurofound Group.