MADRID, March 31 Spanish engineering firm Isolux
Corsan said on Friday it had entered formal talks to avoid
insolvency and gain time to secure a liquidity lifeline to
reactivate the company's operations.
Under Spanish law, companies can enter into pre-insolvency
proceedings that give them up to four months to reach an
agreement with creditors to avoid a full-blown insolvency
process and a potential bankruptcy.
"The decision taken by the board does not affect the
maintenance of the group's activity or the capacity to carry out
operations, in particular the projects initiated in recent
months, and protects it legally for the duration of the ongoing
negotiations", Isolux said in a statement.
(Reporting By Andrés González; Writing by Jesús Aguado; Editing
by Angus Berwick)