Alava Technology Park signs an agreement with Kutxabank that will save €6 million in the purchase of the Epsilon building

The Park will pay €16.3 million, compared to the €22.5 million that had been owed in the 2009 agreement.

Basque Government, 22/06/2012

Today, Alava Technology Park and Kutxabank, in the presence of a notary, have signed a credit agreement to pay €16.3 million for the building of Epsilon, which represents a saving of €6 million. Acting on behalf of the Park, the President of the Basque Country Network of Technology Parks, Francisco Berjo signed the agreement. It comes after the approval on the 8th May, by the Governing Council to change Alava Park’s annual objective, with the Basque Government managing to reduce the impact of the guarantee signed in 2009 by Alava Technology Park with the savings bank, that would have forced the ATP to pay up to €22.5 million in the event of the collapse of the project.

The financing of this purchase is based on a credit agreement on highly favourable terms given by Kutxabank to ATP and is subject to guarantees made by ATP. The credit agreement period will last 20 years and includes a 2-year grace period.

This decision improves ATP’s position in the following ways:

•It limits the debt owed, by preventing the increase of interest on late payments that may accumulate until the time of the auction.

•It reduces the interest on late payments already accumulated as a result of the negotiation with Kutxabank. The interest applied to overdue payments has been below what was reflected in the contract.

•The credit conditions agreed are seen as highly favourable for ATP.

•It makes the Park become firstly a creditor and will facilitate the dialogue between the insolvent company and the potentially interested parties with regards to the disposal of assets.