Editor’s note: This article was first published in February 2011 and reports events as they stood then, including the group still looking for outside capital. Nueva Rumasa companies filed for insolvency later in 2011, and members of the Ruiz-Mateos family later faced criminal proceedings. Nueva Rumasa entered insolvency proceedings in 2011; many small investors in its promissory notes and capital increases were not repaid, and members of the Ruiz-Mateos family later faced fraud charges.
A Madrid court of first instance (No. 57) has ordered the preventive seizure of seven properties owned by Nueva Rumasa, at the request of Inversiones Insulares Radó, following a lawsuit against the Ruiz-Mateos family for non-payment in a hotel sale.
Nueva Rumasa, in turn, has sued Inversiones Insulares Radó for breach of contract. Clearly Nueva Rumasa, which has already had to carry out a collective redundancy procedure (an ERE, in Spanish labour law) and is now also being hit by strikes by its own workers, unhappy about overdue wages that haven’t been paid, is not going through its best moment.
Nueva Rumasa is still looking for outside capital and trying to raise cash by selling stakes in some of its companies.
The media are still not reporting on Nueva Rumasa, and the little that is known comes from online newspapers and from the workers and suppliers themselves, who are already predicting a bad end for this company, which has tried every possible way to get off the ground.
Featured image: Juandev, CC BY-SA 4.0, via Wikimedia Commons.
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