Banco Atlántida initiates a lawsuit against Cox Energy for non-repayment of a loan

MADRID, 28 Mar. (EUROPA PRESS) -

Banco Atlántida has initiated a lawsuit against Cox Energy, whose oral hearing of the trial will take place on May 14 in the Court of First Instance number 52 of Madrid, for alleged failure to repay a loan of about seven million euros.

As reported by the financial entity, Cox contracted a debt with it for a value of 6.75 million dollars (about 6.23 million euros) which, after the expiration of the payment terms, already amounts to 7.628 million dollars (about seven million euros).

Specifically, Banco Atlántida initiated legal proceedings against the energy company in July 2022 due to non-compliance with the repayment conditions of that loan for a value of 6.75 million dollars that the bank had granted in December 2020.

According to the entity, to settle the debt, on December 4, 2021, Cox offered a dation in payment only for shares of its Latin American subsidiary worth less than $250,000 (about 230,000 euros), although it considered that this amount was " clearly insufficient" to cover the total debt.

In addition, he affirmed that the payment with an illiquid asset such as the shares of a subsidiary, entails a variation in their value that "leaves the bank in a situation of added insecurity."

On that same date, the financial entity indicated that it agreed with Cox to extend the term granted for the repayment of the loan until February 7, 2022, but on that date, the energy company did not return any amount.

At the request of Banco Atlántida, the court has agreed to the statement of Enrique Riquelme, in his capacity as CEO of Cox.

Likewise, Banco Atlántida expressed its "doubts about the viability of the Cox project, given the company's repeated breach of payment commitments and the presentation of non-viable guarantees."