IBERSOL | 2019 Annual Report

2019 ANNUAL REPORT Subsequent Events The World Health Organization on 11 March declared a pandemic associa- ted with the spread of Covid-19, having been declared the “Estado de Alar- ma” inSpain and immediately afterwards the state of emergency inPortugal. Later, at the end of the month, the same happened in Angola. The state of emergency determinedmeasures to contain the population and the closure of most shops and restaurants. This situation forced the restaurants to close, leaving only those that had the possibility of making a minimum volume through take-away and delivery. Although open, the restaurants have been operating below their normal potencial. It is possible that the conditions for the resumption of activity during the month of May and June are created. We plan that, in an initial phase, restaurants will work at around 50% of their normal volume, with increasing recoveries until the end of the first half of next year. To reconcile the abrupt reduction in activity and the protection of em- ployment, the Group’s companies activated el ERTE (Expediente de Regulación Temporal de Empleo) in Spain and the simplified and nor- mal lay-off in Portugal. At the same time, initiatives were taken to reduce costs, renegotiate contracts, including the financial rebalancing of lease contracts and the negotiation of payment terms. As of December 31, 2019, the Group had approximately 28 million euros of credit lines available but not used. To cover the cash flow deficits, were ne- gotiated additional lines of 30 million euros and refinanced about 15 million euros, during the first quarter of 2020. Additionally, it is currently in the final contacting process of around 55 million euros, which allows it to reinforce the liquidity shown in the con- solidated financial statements of December 31, 2019. Regarding the recoverability of the assets, we consider it premature to reassess at this moment the conclusions drawn in the preparation of these financial statements. We admit that the recovery from this crisis will be relatively quick and in the medium and long term that the assumptions do not change. 119