Alpine in Talks With Owner as It Sees ‘Significant’ Loss
Alpine Holding GmbH, the Austrian builder whose bonds tumbled last week, said it may have a “significant” loss this year and is in talks with Spanish owner Fomento de Construcciones & Contratas SA on its finances.
Alpine, based in Salzburg, Austria, said “certain” projects are responsible for the loss, according to an OTS statement released late yesterday. Talks with its sole owner, the Madrid-based construction company, focus on providing an “appropriate” equity level for the company, Alpine said in the statement.
“Contrary to the issuer’s prior assessments, in particular due to the evolution of certain projects, the annual financial statements for the 2012 financial year would show a significant loss,” it said in the statement. With support by its shareholder and the funding banks, Alpine is “confident that it will continue to meet all of its financial obligations,” the company said.
Alpine, which built German soccer team Bayern Munich’s AllianzArena stadium, has about two-thirds of its output in Austria and Germany, and more than 20 percent in eastern and southeastern Europe. The company, which employs about 15,000, was acquired by FCC in 2006. Net income was 13.4 million euros ($17.3 million) last year, 18 percent less than a year earlier.
The company said in its annual report, published April 30, that it expects 2012 net income to match the prior year’s level. It sold a 100 million-euro bond in May, and in the prospectus said it wouldn’t provide a profit outlook.
Alpine said in August that it has “growing concern” about its business in Poland, where it is mired in legal battles including one over its contract to build the A1 motorway, saying their “outcome is hard to predict.”
Alpine’s three bonds with 290 million euros outstanding recovered today after tumbling last week, when magazine Profil first reported the company may have a loss on writedowns. The notes sold in May, which mature May 2017, were quoted at 61 cents on the euro today, up from 55 cents Oct. 11, according to prices on the exchanges where the bonds are listed. A 90 million-euro bond maturing June 2016 was quoted 18 cents higher at 60 cents, while a 100 million-euro security due 2015 was up 11 cents at 66 cents.
The company, whose net debt doubled to 550 million euros by the end of June from 277 million euros at the end of 2011, met creditor banks for talks last week. Alpine’s creditors include Erste Group Bank AG (EBS) with 100 million euros outstanding, Raiffeisenlandesbank OOe AG with 82 million euros, and UniCredit Bank Austria AG with 78 million euros, according to the Profil report. Spokesmen for Erste, Raiffeisen and UniCredit declined to comment on the Alpine loans, citing bank secrecy rules.
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