IBERSOL | 2019 Annual Report

2019 ANNUAL REPORT 37. SUBSEQUENT EVENTS The World Health Organization on 11 March declared a pandemic associated with the spread of Covid-19, having been declared the “Estado Alarma” in Spain and imme- diately afterwards the State of Emergency in Portugal. Later, at the end of the mon- th, the same happened in Angola. The state of emergency determined measures 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 possi- bility to carry out a minimum volume through take-away and delivery. Although open, the restaurants have been operating below their normal potential. It is likely that the conditions will be created for the resumption of activity during May and June. 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 jobs, the Group’s companies joined ERTE (Expediente de Regulación Temporal de Empleo) in Spain and the simplified and normal Lay-off in Portugal. At the same time, initiatives were taken to reduce costs, renegotiate contracts, in- cluding 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, it contracted additional lines of 30 million euros and refinanced about 15 million euros, during the first quar- ter of 2020. Additionally, it is currently in the final process of hiring about 55 million euros, which allows it to reinforce the liquidity shown in the consolidated financial statements of December 31, 2019. Regarding the possible impacts in 2020 on the recoverability of assets, we unders- tand that it is not possible to determine any impacts, if any. 287