Image: Wolfgang Simlinger
After the sale of the cable division collapsed in December, the heavily indebted cable and wiring system specialist urgently needs fresh money. “The ongoing negotiations give reason to expect that there will be no solution without a capital cut by the shareholders,” said Leoni. The industrialist Stefan Pierer also has a 20 percent stake in the supplier. He is the largest single shareholder and, according to the announcement, wants to “make a significant contribution to the restructuring as part of the equity injection” under certain conditions.
If the measures that are likely to be necessary are implemented, there is a risk that the shares will lose value. The banks involved will probably have to waive some of their claims that were due at the end of the year. The share price collapsed by more than 40 percent yesterday.
According to the company, its net financial debt is 1.5 billion euros. A large part of this would have been due at the end of the year. The income from the sale of the profitable cable division should have been used for partial repayment. Income of 400 million euros was planned before a Thai interested party surprisingly jumped off.
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