Talgo began the dance of positions with different degrees of responsibility within the company in the movements that occur after the arrival of the State and the Basque Government with Sidenor to the shareholders of the company. The group has … dispensed with two directives which were responsible, to varying degrees, for some of the projects of the company, which are no longer available for various reasons, in the context of the shareholder, financial and commercial developments in which the railway manufacturer is involved.
The changes involve a departure from the management committee and dismissal in a key production sector. In the first case, the manager had a long history in the group, spanning more than two decades, whose functions were changed a year ago, and who has now executed the departure of this organization under the agreed conditions. In the second case, it concerns an unagreed dismissal related to engineering. It turns out that two of these positions are occupied by women with extensive experience and significant responsibilities in the company’s projects.
These developments came unexpectedly for a historical period not used to rotationswhich generated controversy within the group, according to internal sources at ABC. “They have generated confusion,” underline these same sources, who highlight corporate governance policies linked to the presence of women in these positions. However, company sources consulted by this newspaper suggest that this is a cessation of activity. agreedin one case, and a dismissal, in the other, which meets the company reorganization to improve certain processes.
The group risks a fine of one million dollars from Renfe for delays in the delivery of Avril units, convoys which have caused numerous incidents in recent months in the operations of the public railway company. The public company Renfe claims Talgowhich is its main supplier, compensation of 116 million euros for the damage caused to its activity during the months when it did not have the new locomotives.
This Tuesday precisely, Talgo signed the agreement planned during the general meeting last Friday for the formalization of a syndicated loan of a maximum amount of 770 million euros -structured in a tranche of up to 650 million with a partial guarantee from the CESCE and a ‘revolving’ tranche of 120 million- and a line of guarantees of 500 million euros, also with a guarantee from the public company.
This refinancing is part of the authorization of a capital increase of 45 million euros, the issue of 300 bonds convertible into ordinary shares for 30 million euros and the issue of 750 other convertible bonds for 75 million euros.
Review of orders in Germany
The changes to the directive also come at a time when Talgo continues to suffer from major industrial capacity problems to fulfill its orders. Indeed, yesterday, she received a large bottle of oxygen in agreement with the German operator Deutsche Bahn (DB) reduce the delivery of Talgo 230 trains from 79 to 60, an order which is accumulating significant delays although it is the largest in the history of the railway manufacturer, with an initial value of around 1.4 billion euros. Yesterday at market close, Talgo shares fell 1.75% to 2.80 euros.
Despite the reduction in production, Talgo and DB maintain the framework contract signed in 2019 which allows the order to be extended up to 100 trains, in addition to adding a maintenance contract for overhauls (‘revisions‘) in the long term and the rescheduling of the project, as the company communicated yesterday to CNMV.
Talgo 230s, referred to by Deutsche Bahn as “ICE L”, are self-propelled high-speed trains capable of traveling at speeds of up to 230 kilometers per hour. The first service of this locomotive took place precisely last Sunday on the route between Berlin and Cologne.
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