OREANDA-NEWS. Fitch Ratings says that there is no immediate rating impact on Isolux Corsan SA (B/Rating Watch Negative) from its Brazilian subsidiaries' application for an out-of-court scheme of arrangement. The "recuperacao extrajudicial" affects Corsan Corviam Construccion SA do Brasil, Isolux Ingenieria SA do Brasil, Isolux Projetos e Instalacoes Ltda and Isolux Projetos, Investimentos e Participacoes Ltda and has been agreed with the required percentage of creditors, including bank funding and suppliers.

Isolux has confirmed to Fitch that this process has not triggered an event of default under its bond and syndicated loan documentation, particularly cross-default provisions (since Brazilian creditors have not called a default) or the clause that refers to "certain events of bankruptcy and insolvency" with respect to defined types of group subsidiaries.