LJUBLJANA, April 2 Trading in shares in
Slovenian energy and tourism group Istrabenz (ITBG.LJ) has been
suspended until April 17 due to the company's insolvency after
it failed to reach a deal with creditors, the Ljubljana bourse
said on Thursday.
There was no trading in the shares on Thursday but the price
fell 3.46 percent to 8.46 euros in thin volume on Wednesday, the
day after the company declared itself insolvent. Over the past
year the share price has dropped by 91 percent.
Under Slovenian law the company has 60 days to reach a deal
with creditors on debt repayment otherwise it has to go into
bankruptcy which would be the biggest corporate failure in
Slovenia in the last decade.
The head of Istrabenz, Igor Bavcar, resigned on Tuesday but
the supervisory board said he would continue to lead the company
until May 15.
The company and its affiliated firms owe some 950 million
euros to 19 banks, with some 160 million euros due by the end of
March, according to local media reports. Bankruptcy would be the
biggest corporate failure in Slovenia in the last decade.
Apart from many local banks, a number of Austrian banks,
namely Bank Austria BAWFgf.VI, Bawag, Hypo Alpe Adria and the
Kaertner Sparkasse, are also creditors.
The bourse also suspended trading in a small financial
company Maksima Holding MAHH.LJ, which owns 25 percent of
Istrabenz and declared insolvency on Wednesday, mainly because
of the drop in the value of its investment in Istrabenz.
(Reporting by Marja Novak; Editing by Greg Mahlich)