He was right about Eniro – Dagens Industri

He was right about Eniro – Dagens Industri

        Updated 2014-10-09 22:44. Published 2014-10-09 22:12
     

On Thursday afternoon raged Eniro by 33 percent in the stock market and trading was stopped since. The reason is data in Swedish newspaper Svenska Dagbladet that Eniro lenders discuss in terms of where to put Eniro bankrupt themselves take over the collateral. The alternative to this is a new issue of 1-2 billion, the paper wrote, citing “a source familiar with the negotiations.”

It was at a press conference on September 5 that Eniro told about the accounting scandal that hit the company. Among other things, stated the company to shareholders, operating profit systematically and deliberately blown up in 2013 and 2014, Eniro took the opportunity to profit warning by turning down its full year operating profit, measured as EBITDA, from 850 million to 700 million.

At the press conference was grilled chairman Lars-Johan Jarnheimer by Stefan Nelson, analyst at SEB. Nelson wondered if the company would still be able to repay his loan of 2.2 billion at the pace promised the six banks that stand behind the loans. Among the lenders are several major Swedish banks Handelsbanken, Nordea, SEB and Swedbank.

Lars-Johan Jarnheimer claimed then to “not discussed” a new issue, but did not rule out that might need to cut down on the rate of amortization.

In an analysis to its customers dated the same day wrote Stefan Nelson that he believed that the lower operating profit and the deteriorating outlook for cash flow would make it difficult for the company to live up to its agreement to repay 375 million a year.

“According to our forecasts , this would have been challenging even before today’s announcement. We do not believe that the Nordic banking consortium will accept this and force both parties to raise new capital, “wrote Stephen Nelson in an analysis on 5 September.

There is a analysis he still stands.

“An IPO is is still a likely solution, although it has become more difficult as the shares have fallen. Another option is to cut down on the amortization rate, “he says.

What do you think of a scenario where banks ask the company into bankruptcy and take over the collateral?
“It’s an option. But I find it very difficult to see that the banks would like to ask the company into bankruptcy. “