Business · Companies · 3 hrs ago
Madrid court ruling limits Mirto debt plan for two subsidiaries
A Madrid court ruled that Mirto’s plan cannot bind banks at two subsidiaries.
The decision concerns Creaciones Mirto and Exigency, while the parent company’s plan remains valid.
Mirto had arranged to repay nearly €27 million without cutting the debt, using payment delays and extended repayment schedules.
The Spanish fashion group, known for making shirts, has faced financial strain since the pandemic and took on more debt after expanding into Mexico.
Banks challenged the plans, arguing the subsidiaries’ repayment plans were not viable.
The court said the subsidiaries relied on possible future funding that had not been firmly promised, and that ordinary cash flow was not enough to meet some payments.
The parent company’s restructuring plan remains in force, but banks are no longer bound by the delayed payments agreed for the two subsidiaries.
Madrid’s Provincial Court has ruled that Mirto’s restructuring plans for two subsidiaries cannot impose their effects on banks.
The court accepted banks’ challenges to the plans for Creaciones Mirto and Exigency, citing concerns about their viability.
The ruling leaves in force the restructuring plan for Mirto Corporación Empresarial, the group’s parent company.
The four plans covered nearly €27 million in debt, with repayments scheduled after a four-year grace period and no principal write-offs.
- Who
- Madrid’s Provincial Court ruled on challenges by banks to restructuring plans for Mirto and its subsidiaries.
- What
- The court removed the plans’ effects on banks for two subsidiaries but upheld the parent company’s plan.
- When
- The ruling was reported on 20 October 2026.
- Where
- Madrid, Spain.
- Why
- The court found the two subsidiaries’ plans lacked viability, including because repayment relied on funding that was not legally guaranteed.
Banks
Mirto
Viability
Banks
The banks challenged the subsidiary plans, arguing they imposed a useless sacrifice under an unviable plan.
Mirto
Mirto’s plans proposed full repayment of nearly €27 million without principal write-offs.
Repayment funding
Banks
The banks argued that the subsidiary plans relied on uncertain future funding.
Mirto
The plans included extended repayment schedules, but the article does not state Mirto’s response to the banks’ challenges.
The pandemic caused a slowdown that contributed to Mirto’s financial difficulties.
Mirto invested in working capital to enter the Mexican market, raising sales but also increasing its leverage.
Madrid’s Provincial Court accepted banks’ challenges to the plans for two subsidiaries while upholding the parent company’s plan.
- Subsidiaries affected
- Creaciones Mirto and Exigency
- Parent company plan
- Mirto Corporación Empresarial; upheld by the court
- Debt covered
- Nearly €27 million
- Bank debt at issue
- More than €8.5 million across the challenging banks
- Creaciones Mirto repayment
- €3.78 million of bank debt due in 2028
What people are saying
a useless sacrifice under an unviable plan