The stock market day has been especially tough for Gathered Tubeswhose share price has suffered a real crash on the Spanish stock exchange. In just a few hours, the stock price plummeted by nearly 40%, reflecting growing investor anxiety in the face of a possible bankruptcy proceedings and a very strained financial situation.
In a context marked by Rumors of insolvency, failed negotiations, and high levels of debtThe Basque Country-based company is under intense scrutiny from markets, regulators, and its own employees. The possibility of the historic pipe manufacturer filing for bankruptcy is no longer just idle talk: the company itself has publicly admitted that this option is on the table.
Historic stock market crash and market reaction
The punishment on the trading floor was immediate after it became known that Tubos Reunidos finalizes the preparations for bankruptcy proceedingsAccording to various reports, including those from financial media outlets such as El Confidencial and Cinco Días, the law firm Uría Menéndez is advising the company in the preparation of this process, the timeline for which would be around the next few weeks.
In the early stages of the session, the value plummeted to around 40 %with shares trading at just €0,133 before the decline moderated slightly. At midday, the shares were moving around... 0,14 EurosThis represented losses of around 35%. Ultimately, the shares ended the day with a decline of approximately 36,5%-37,5%, consolidating one of the worst sessions in its recent history.
What has been striking to many market players is that, despite the abruptness of the move and the avalanche of information about a possible imminent bankruptcy, The CNMV did not halt trading. during the session. The collapse occurred, therefore, while the stock was trading normally, fueled by continuous sell orders and an atmosphere of enormous uncertainty.
This move adds to a more prolonged decline: in recent months, the company has accumulated a drop of around 70% drop in stock market valueThis reflects the market's lack of confidence in its ability to turn things around. For many investors, bankruptcy proceedings are now seen as an increasingly likely scenario.
Sources close to the board of directors indicate that the company's governing bodies They closely monitor price developments and news flowsWhile not ruling out calling urgent meetings to analyze the situation, management has tried, until now, to maintain some room for maneuver, but market pressure is shortening the timeframe for making decisions.
Admission of the possible application for voluntary bankruptcy
After the market closed, Tubos Reunidos sent a relevant fact to the National Securities Market Commission (CNMV) in which, for the first time, he openly acknowledges that he cannot rule out the possibility of a request declaration of voluntary bankruptcyThis is a significant step, as the company had previously avoided confirming this scenario so explicitly.
In their communication to the supervisor, the group admits that It has failed to secure either new funding or the entry of strategic partners. that would allow the business to be relaunched. It also acknowledges that the decline in business has placed the company in a situation that “compromises its viability” and that could force it to adopt “additional measures” if the situation does not improve.
The text submitted to the CNMV underlines the existence of a material uncertainty regarding the company's ability to continue as a going concernThis aligns with warnings already issued by the auditing firm Ernst & Young (EY). These auditors have indicated in their reports the presence of “significant doubts” about Tubos Reunidos' ability to continue operating without a major restructuring.
In addition, the Work inspectionWithin the framework of the company's workforce reduction plan (ERE), it has been noted that the group's results reflect a prolonged loss of operating profitability and that there is a "legal cause for dissolution." This particularly harsh assessment reinforces the idea that insolvency proceedings may ultimately be the only way to rectify the situation.
The possible filing for bankruptcy is presented as a mechanism to reorganize the liabilities, buy time in negotiations with creditors and, eventually, facilitate the entry of an industrial investor who can provide capital and long-term stability. But, as sources in the financial sector acknowledge, the success of this strategy will depend on how the debt restructuring is carried out, especially the debt linked to SEPI.
Runaway debt and failed bailouts
One of the central elements of the Tubos Reunidos crisis is its high debt, which is around 263 million eurosA substantial part of that figure corresponds to loans linked to the State Industrial Holdings Company (SEPI), which became the main creditor after the bailout approved during the Covid-19 pandemic.
In 2021, the steel group received an injection of funds through the strategic companies support fund, which, with various expansions, has become a debt to SEPI in the region of 150 million eurosDespite the company's attempts to renegotiate the terms—including seeking broader bank refinancing—the talks have not resulted in a significant agreement.
The proposals put forward by the public sector have been primarily focused on to make loan repayment terms more flexiblewithout accepting a significant reduction of the principal for now. This reluctance on the part of the State to assume losses has hindered the entry of new private investors, who are reluctant to commit capital unless the financial burden is substantially eased beforehand.
Over the past few months, the company has explored the option of having an industrial partner —with the explicit backing of the Basque Government— that would help sustain the production business and maintain activity at the plants. However, the combination of negative results, high debt, and the absence of a fully agreed-upon viability plan has meant that, for now, no candidate has taken the final step.
The objective of the possible restructuring is twofold: on the one hand, organize the payment schedule and avoid immediate liquidity problemsOn the other hand, the goal is to create a stable framework that allows continued production and preserves as many jobs as possible. However, delays and disagreements in negotiations with key creditors have gradually reduced the company's room for maneuver, pushing it to the brink of bankruptcy.
Million-dollar losses and business decline
The financial pressure is exacerbated by the poor operating results in recent yearsTubos Reunidos closed 2025 with losses of around 118 million euros, a radical change compared to the profits obtained in 2024 (around 28,6 million), which shows the sharp deterioration of its economic situation.
The business downturn is attributed to several factors. Among them, the impact of the tariffs on steel and aluminum imports in the United States, which reach approximately 50% and they directly affect one of its most important foreign markets. This international context has reduced margins and sales volume, intensifying the difficulties of a company that was already heavily leveraged.
Adding to the adversity of the business environment is the reduction of activity at some of its plantsEspecially after the labor dispute at the Amurrio plant (Álava). The indefinite strike and the production stoppage at these facilities have worsened the decline in revenue and complicated the implementation of the viability plan designed by management.
External reports, both from auditors and the Labor Inspectorate, emphasize that Operating profitability has steadily deteriorated...to the point of questioning whether the business can survive without drastic intervention. These warnings, which at other times might have served as a wake-up call to accelerate solutions, have ended up being yet another reflection of the stagnation and lack of agreements.
The combination of recurring losses, a high financial burden, and zero progress in attracting new members has led many analysts to believe that the The insolvency route has become, de facto, the only viable alternative to rectify the situation. The question now is how this process will affect the various creditors and the workforce.
Viability plan, workforce reduction plan and labor dispute
To try to stem the bleeding, Tubos Reunidos launched a feasibility plan based on three main pillarsThe plan includes: workforce reduction through a redundancy procedure, debt restructuring, and the search for new investors. Of these three pillars, only the workforce adjustment has made effective progress.
The proposed workforce reduction affected slightly more than 300 workersalthough after negotiations the figure was reduced to around 240-242 exitsThe agreement, which was primarily voluntary, included severance pay of 45 days per year of service and early retirement options, including early retirement from age 57, with the aim of mitigating the social impact of the cuts.
Despite these conditions, The main unions in the Basque Country —ELA, LAB, UGT and ESK— have challenged the ERE (Employment Regulation File). before the High Court of Justice of the Basque Country. The unions question both the substance of the adjustment and the context in which it has occurred, and are maintaining protests and an indefinite strike at the Amurrio plant, which has resulted in prolonged production stoppages.
The Labor Inspectorate, for its part, endorsed the formal correctness of the processThe report concluded that the negotiations had been conducted without fraud and with the required guarantees. While acknowledging the severity of the company's financial situation, the report also indicated that there were objective reasons justifying the job cuts, which has further strained relations between the union representatives and management.
In parallel, the Basque Government has attempted to act as mediator and catalyst of an industrial solutionpressuring the central government to relax the terms of the SEPI loan and thus allow the arrival of a strategic partner. This political pressure, however, has not yet translated into a substantial change in the central administration's position, which continues to refuse to consider a reduction of the public debt.
Perspectives and possible scenarios for Tubos Reunidos
With all these elements on the table, the immediate future of Tubos Reunidos is debated between an orderly restructuring under judicial supervision or further deterioration if decisions are delayedThe potential bankruptcy proceedings are seen as a tool to try to preserve industrial activity and maximize recovery for creditors, but they also raise doubts about their impact on employment and the group's plants.
On the financial front, the priority would be to redefine the terms and conditions of the 263 million debtWith particular attention to SEPI's position. Any solution that doesn't have the approval of the main public creditor is unlikely to succeed, so the coming weeks will be key to seeing if a compromise can be reached or if the negotiations become even more complicated within the insolvency framework.
For the Basque production network and the Spanish steel sector, the outcome of this case is seen as a thermometer of business crisis management with strong public involvementTubos Reunidos is not just any company: its historical trajectory, its weight in industrial employment and the presence of the State in its capital through loans make its situation a matter of economic and political relevance.
Meanwhile, investors seem to have a clear view: the lack of visible progress in the search for partners and in refinancing This has undermined confidence in the group's ability to recover. The share price collapse and volatility of recent sessions show that the market is pricing in a very complex scenario, with a significant portion of the current shareholders already assuming the possibility of heavy losses.
While awaiting confirmation of the formal filing for bankruptcy and the finalization of the terms of any potential restructuring, the company faces a crucial moment. What happens from now on will determine not only the future of Gathered Tubesbut also the way in which public bailouts and reorganizations of strategic industrial companies subjected to a perfect storm of debt, lack of profitability and distrust in the markets are addressed in Spain.
