Oct. 11 (Bloomberg) -- Alpine Holding GmbH bonds tumbled after Profil magazine reported the Austrian builder owned by Spain’s Fomento de Construcciones & Contratas SA needs to raise cash to continue operating.
Alpine’s 100 million euros ($129 million) of notes maturing May 2017 were quoted at 55 cents on the euro, down from 106 cents Oct. 2, according to prices compiled by Bloomberg. The Salzburg-based company’s 90 million-euro bond maturing June 2016 traded at 42 cents.
The company is meeting creditor banks for talks tomorrow, Johannes Gfrerer, a spokesman for Alpine, said by telephone. He declined to say which banks it is meeting or what the talks are about. Alpine has 660 million euros of bank debt with lenders including Erste Group Bank AG, Raiffeisenlandersbank OOe AG, UniCredit Bank Austria AG, according to the Profil report.
Alpine needs 31 million euros by next week to stay in business and may have writedowns of as much as 400 million euros on building projects in south-eastern Europe, the magazine reported yesterday, without saying where it got the information. The company said in a statement yesterday that its liquidity is “assured,” and that it has the full support of its Madrid-based owner.
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