Factory Automotive calls meeting due to inviability and lack of liquidity

The governing body of Factory Automotive, S.L. has called its shareholders to an extraordinary general meeting to be held on September 10, 2026, at 12:30 p.m. at Calle Pilar, number 8 (postal code 28290) in Las Rozas de Madrid, to deliberate on the inviability of the company’s operations due to a lack of liquidity. The announcement is published in the Official Gazette of the Mercantile Registry (BORME) number 162, dated August 24, 2026, page 5995, with reference BORME-C-2026-4798.

The notice, signed on August 19, 2026, by the administrator Pablo Jaudenes Baillo, is framed within the second section of the gazette, dedicated to announcements and legal notices, under the section for meeting notices. The company, dedicated to the purchase and sale of new and used motor vehicles, as well as the import and export of vehicles and spare parts, proposes a restructuring plan that involves reducing the capital to zero and relaunching it with new contributions.

A financial restructuring agenda

The first item on the agenda is the administrator’s report on the accounting status, the balance sheet, and the inviability of operations due to lack of liquidity, which will serve as the basis for the remaining agreements. Subsequently, the consolidation of accounting operations and the repayment of provisions provided by the administrator will be addressed.

The core of the operation is the capital reduction due to the update of the book value of shares numbered 1 to 3,000, inclusive, down to a total of zero euros, due to the credits borne by the company. This reduction is accompanied by the amortization of social shares without return of capital, justified by the devaluation of the shares’ value.

Capital increase and shareholder rights

Following the reduction to zero, a capital increase through the issuance of new shares numbered 1 to 3,030, inclusive, with a nominal value of one euro each, is proposed. The agenda also includes:

• The exercise of pre-emptive acquisition rights by the shareholders regarding the newly issued shares.
• The subscription of the remainder of shares not subscribed by the shareholders by third parties.
• The granting of power of attorney to the administrator for the public notarization of the corporate agreements and the subscription of the newly issued shares.

Shareholders are informed of their right to request any clarifications or reports they deem necessary regarding the agenda items, under the legally and statutorily applicable terms, as well as the pre-emptive subscription right for the newly issued shares, which shall be exercised at the time of the meeting.

Relevance for shareholders and employees

The extraordinary general meeting of Factory Automotive, S.L. is a decisive step for the continuity of the company, which is experiencing a critical treasury situation. The reduction of capital to zero and the subsequent increase directly affect the current partners, who will see their holdings amortized without reimbursement, and condition the future of the company’s workers, depending on whether the recapitalization allows activities to resume. The decision adopted by the partners on September 10 will determine whether the company manages to overcome the declared inviability or heads toward its dissolution.

Source: Official Gazette of the Mercantile Registry (BORME), no. 162, August 24, 2026, Second Section (Meeting Notices), page 5995 (official reference: BORME-C-2026-4798).