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Dogi returns to the trading floor after five years

By FashionUnited

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Fashion

On June 30th, the Madrid Stock Exchange will welcome back one of the Spanish stock market classics: textile firm Dogi, whose stock was suspended five years ago on May 27, 2009 after the company voluntarily entered administration. The National Securities Market Commission (CNMV in Spanish)

approved lifting the suspension of trading for Dogi International, whose shares left the Madrid trading floor five years ago.

The regulator noted in a statement that the delisting was effective from May 27, 2009 and was adopted when the textile company "entered the judicial process of competition creditors voluntarily as there was a lack of information that made it impossible for investors to know their real situation."

Now, the CNMV has authorised the company's return to the market, "once it passed that stage, and after informing the market of all aspects relating to the situation of the company and its viability plans".

Dogi welcomed back to the stock exchange after overcoming administration

Note that although Dogi has not completely overcome its financial difficulties, the textile firm has successfully ended the bankruptcy process that forced its exit from the stock market in 2009. Currently, the Spanish textile must deal with other problems, such as high indebtedness or the risks related to lack of liquidity.

The body chaired by Elvira Rodríguez has reminded investors and suitors alike that any plans for the company's recapitalisation and debt restructuring must include a Public Acquisition Option (OPA in Spanish) for the 100 percent of the capital made by Sherpa.

The CNMV authorised the return to the listing but makes special mention of the risks that may involve investing in Dogi: "its high debt, the risk of lack of liquidity, asset impairment, equity imbalance default plan business and the ability of the company and its group to continue the activity, fundamentally conditioned the success of the restructuring measures taken."

Angela González Rodríguez

Dogi