Alpine Bonds Slump as Creditors Debate New Funding: Vienna Mover
Alpine Holding GmbH’s bonds slumped after a newspaper reported that creditors to the Austrian builder will decide today whether it will get the funding it needs to continue operating.
Alpine’s 100 million euros ($133 million) of notes due May 2017 slumped 18 cents to 33 cents on the euro, the lowest since the securities were sold in May 2012, according to German Exchange prices. The company’s 90 million euros of June 16 notes dropped 17 cents to 36 cents, while its bonds due July 2015 tumbled 10 cents to 48 cents on the euro, the prices show. The Salzburg, Austria-based builder owned by Spain’s Fomento de Construcciones y Contratas SA said last week reviewed its business plan after the sale of three subsidiaries was delayed. The company is seeking to raise at least 100 million euros by selling assets as part of a restructuring plan agreed to in March.
Alpine suffered a pretax loss of 90 million euros in the first quarter, 53 million euros worse originally projected, due to bad weather and restructuring costs, it said on June 4.
Johannes Gfrerer, a spokesman for Alpine, confirmed creditors are meeting with company representatives today. He declined to comment on the amount of funding needed.
FCC needs to provide Alpine with as much as 400 million euros to continue operations, Austria’s Kurier newspaper reported today, citing unidentified people in “bank circles.”
Michael Mauritz, a spokesman for Erste Group Bank AG, one of Alpine’s banks, said today in an e-mail that creditors convened a “regular meeting.” He declined to elaborate.
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