SEPI Sociedad Estatal de Participaciones Industriales

• The Ministry of Finance and Public Service will submit to the Council of Ministers the proposal of the Ministry of Defense

The Board of Directors of the Spanish state-owned industrial holding company Sociedad Estatal de Participaciones Industriales (SEPI), in the course of the ordinary meeting which it held this Friday, resolved to request to the Council of Ministers authorization for the Members’ Voluntary Liquidation of DEFEX, a company in which SEPI holds a 51% participation in its social capital, while the remaining 49% is in the hands of private partners. The proposal comes from the Ministry of Defense and will be submitted to the Government by the Ministry of Finance and Public Service.

The resolution was adopted after an analysis of the situation of DEFEX and after observing the difficulties faced by the company for operating on the market as a result of the reputational damaged suffered and the protective measures taken in the course of the enquiry carried out by central court no. 5 of the Audiencia Nacional.

In case that the Council of Ministers were to authorize the Members’ Voluntary Liquidation of DEFEX, the corporate proceedings for its winding-up and liquidation would begin. During this last stage, the company would keep its legal nature and would focus its activity, in coordination with the court, on concluding the contracts in progress, the disposal of its assets and the payment of its debts, meeting its obligations with its workforce, and liquidating all its others obligations.

At the same time, DEFEX will continue collaborating with the Justice until all the court proceedings have been concluded, defending its actions as a legal person against the unfair administration carried out by its former managers and preserving its assets until all its obligations which can result from the court cases have been settled.