Galasa sells family jewels to avoid bankruptcy

Water company Galasa is saddled with a €37m debt

By David Jackson

Water company Galasa is technically insolvent and will have to close by December unless its financial situation improves, it has emerged.

The firm, which is owned 51 per cent by the provincial council and the rest by local councils, has accumulated a €37 million debt which is increasing monthly. Electricity was cut off to its commercial offices last May after the company defaulted on a €1.5 million debt to Endesa, and still has not been reconnected.

Andalusian MP Maria Amat (IU) warned: “Under national law regulating the organisation and running of public companies, Galasa has until December 1 to present a balanced statement or be forcibly liquidated with no possible extension.”

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