個案總覽

In late October 2012 the board of directors of Spanish industrial conglomerate Inveravante (IV) were set to have a meeting to examine the situation regarding an investment IV had made in Venezuelan oil company Vetra, and to consider possible ways to divest said company. As managing director of Avantegenera, one of the business units of IV, Luis García was appointed to present realistic options for divesting Vetra to the board of directors of IV, offering a valuation of Vetra and recommendations for the future. He knew that the members of the board believed that it was time for a change and to finally make some profit from the investment in Vetra. Since the proposal to invest in Vetra had been made to the board by Mr. García some years earlier, he was very keen to bring the venture to a successful completion.

In late spring 2009, Osvaldo Martínez, Finance Manager at Autopistas del Centro, a private company operating a toll road bypass in Madrid, was analysing with growing concern the financial impact of reduced traffic on its toll road. In 2008, overall freeway traffic in Spain fell by 12%, and the trend did not suggest any improvement in 2009. Mr. Martínez believed the situation to be basically unsustainable. The company's lenders wanted to renegotiate costs and deadlines, due to the increase in risk of the project. Due to the drop in revenues and operating earnings, the project would need an additional two million euros and the current shareholders refused to agree to all the refinancing of the project coming out of their pockets. Operational and financial improvements would be needed in order for the project to be viable and offer at least a minimal return. The case describes the progress of a project finance operation from its beginnings in 2004, and the situation of the project in 2009 in the face of a crisis and consequent failure to meet the initially expected cash flows. The case offers an excellent opportunity to discuss what to do when a Project Finance fails, analysing the alternative ways of ensuring the project's viability and profitability.