The board of the troubled FCC, a Spanish construction company which is burdened with debt as a result of the Spanish building boom and eventual bust, agreed on a capital increase of $1.3 billion. While the deal has yet to be approved by shareholders, who will reach a decision on November 20th, it seems a necessary, if dilutive measure to take care of the company’s massive debt, as reported by Reuters.
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Esther Koplowitz holds a 50% share in the company which she inherited from her father, who founded FCC. She bought out her sister Alicia’s stake in the company. Koplowitz signed a separate refinancing deal, and is likely to lose a substantial portion of her stake in the company. FCC said, “The board thanks major shareholder Esther Koplowitz for the efforts she has made to make the restructuring of FCC possible.” FCC’s stock had been faltering on worries that Koplowitz had not yet signed off on debt restructuring and shareholders feared there would be no solution by the end of the year. FCC said the restructuring will put the company ahead of its 3 year plan to combat debt.