Pulse in between Spring water and Social security after bankruptcy Unipapel and other companies in which he participated in the spotlight again. The last confrontation took place barely two weeks ago, with a favorable result for the investment fund. Supreme Court he laid the foundation in front of the claims of the General Treasury and dictated that the company, whose biggest representative in Spain was a German businessman Martin Gruschkahe should not be responsible for the seven million euro debt he created Unipapel with management between 2014 and 2018. Reason: It was not proven that all of his related companies formed the same business group.
This is what it says in the judgment of November 10 of the High Court, which considers the appeal of the body depending on Ministry of Inclusion and in which the dispute-administrative room concludes that there is no place. Social Security filed this extraordinary appeal several months ago, after losing to Supreme Court of Justice in Madrid (TSJM) the previous attack during the pandemic, in 2020, in which Springwater Capital Spain (later renamed Investment Monitoring Services SL) was released from seven million euros of debts Unipapel Y Communication section.
This verdict annulled the administrative decision implemented by the Provincial Administration of Madrid in 2018. The main treasury of social security (TGSS)which confirms the first decision of the provincial sub-directorate of the executive collection area. With that ruling, Springwater was released from joint and several liability for Unipapel’s debts and appealed to Social Security not only to cancel the debt claims arising from that statement, but also also on the return of the corresponding installments paid with interest.
The key in the reasoning of the Supreme Court is the judgment it pronounced The Supreme Court of Andalusia in February 2020, which studied the unfairness of dismissals in the company datasur, owned by Continuum, after the Employment Regulation File (ERE). That decision concluded that the American company Springwater Capital LLC and the Spanish subsidiary Springwater Capital Spain would form a commercial group between them, but not the Luxembourg company Continuum, in which they only had a 15.16 percent stake and which, as Springwater defended, limited his relationship to a normal client relationship to advise him on investment and sales operations.
a collision of reasoning
The reasoning of the Andalusian court was somehow in conflict with the conclusions presented by the Land Court two years earlier, in 2018. Despite the complexity of the matter, forcing the Supreme Court to decide on two sentences with different and contradictory meanings, the high court decided on the final verdict. “After the appellate ruling found that Investment Monitoring Services was not part of the business group,” the room begins, “It is not appropriate for us to specify or add nuances to the existing judicial practice”adds the resolution from November.
This latest appeal comes to the courts years after a magnifier in various court instances that reviewed the dismissals that Springwater made at the companies in which it invested. Judgment of the State Court He was very harsh towards the Martin Gruschka fund and forced the return of fired workers to Unipapel. Added to this were other sentences in a similar vein by the trial courts in the regions such as Basque country, as the Comisiones Obreras celebratedwhere Springwater was considered a task force made up of several companies, which opened the door for all subsidiaries to have to answer for the debts of the other companies.
A gluttonous fund
Spring Water burst into Spain during the financial crisis of 2011, when it saw fit to start expanding rapidly by taking control of companies in fragile situations with the aim of restarting them, such as electrical appliances trading i look. Many of these bets were successful, others did not bear fruit (purchase internet charnet, for example from Vocent), and some soon resulted in closures and layoffs. The last of these investors to have a tragic end was pullmanturalready in liquidation.
Currently, and despite the fact that we still have investees in Spain, Gruschka directs its main business to the United Stateswhere he founded a special purpose company (SPAC) together with Edward Montes, former president of the electricity employers’ association Unesa. According to the SEC filing, Gruschka describes himself as an executive with 30 years of experience in investment banking, strategic consulting and private equity, “with specialized knowledge in media, telecommunications, technology, engineering, aviation and tourism.”