May 17 (Bloomberg) -- Alpine Holding GmbH’s bonds tumbled as the construction company said it’s proving hard to sell assets, undermining restructuring plans.
Alpine’s bonds due July 2015, June 2016 and May 2017 were quoted at 45 to 60 cents on the euro on German securities exchanges, as much as 43 percent lower than yesterday, according to prices compiled by Bloomberg. The debt has a total face value of 290 million euros ($373 million).
The Salzburg, Austria-based builder thwarted insolvency in March by winning creditor bank agreements to reduce claims by 150 million euros, leaving bondholders unscathed. A restructuring plan includes raising at least 100 million euros by selling three subsidiaries, the company said.
Prices offered for its units are not meeting Alpine’s expectations, Johannes Gfrerer, a spokesman for the company said in a telephone interview today. “There is a conflict between the time of a sale and the price you hope to get,” he said.
The amount the company hoped to raise proved unrealistic, Die Presse reported earlier today, without saying where it got the information.
Alpine, owned by Spain’s Fomento de Construcciones & Contratas SA, posted a loss of 449.7 million euros last year as construction dropped to 3.21 billion euros from 3.62 billion euros a year earlier. The company, which built German soccer team Bayern Munich’s AllianzArena, is exiting unprofitable markets and cutting staff to break even by 2015.
“Nothing happened that makes us question our agreement with the company’s owners,” Michael Mauritz, a spokesman for Erste Group, said today via telephone. A spokesman for UniCredit Bank Austria, which leads creditor banks along with Erste, didn’t immediately return a call seeking comment.
To contact the reporter on this story: Alexander Weber in Vienna at firstname.lastname@example.org
To contact the editor responsible for this story: Mariajose Vera at email@example.com