E-Star Alternativ Nyrt., a Hungarian renewable energy and heating company, fell to the lowest in almost three years after starting a “restructuring plan” to address accounting errors and boost liquidity.
The shares fell as much as 3.2 percent and traded 1.1 percent lower at 2,400 forint by 9:43 a.m. in Budapest, the lowest intraday level since May 2009.
E-Star cannot present audited financial statements to shareholders today after discovering “imperfections” in its 2011 accounts, the company said in a statement to the Budapest Stock Exchange today. E-Star needs to recalculate some projects and will start the “restructuring” to elimininate the accounting problems and “enforce the liquidity situation of the company.”
“We expect negative market reaction as investors focus on financial problems,” Peter Szentirmai, a Budapest-based analyst at the broker unit of KBC Groep NV, wrote in a research report.