VIENNA (Reuters) - Alpine, the Austrian unit of Spanish construction group FCC (FCC.MC), failed to strike a deal with creditors to reorganize its debt and said on Tuesday that insolvency proceedings were “imminent.”
“Efforts to reach an out-of-court settlement for the restructuring of Alpine group have, contrary to expectations and despite significant support by financing partners and intensive efforts by the shareholder, not been successful and thus been terminated,” Austria’s second-biggest construction group said.
It said in a statement that management was preparing to file soon for reorganization. “Due to these developments, insolvency proceedings of Alpine Holding GmbH are imminent.”
It said experts had drawn up plans to save part of the group. “This concept shall be assessed and implemented in the next weeks by the competent administrators.”
Alpine employs around 15,000 staff, half of them in Austria, and had 2012 output volume of around 3.2 billion euros.
The news came just hours after Chief Executive Arnold Schiefer said Alpine expected to clinch a second deal with creditors within three weeks.
Alpine lost 450 million euros ($600 million) last year as it began to pull out of unprofitable projects abroad and took big writedowns.
Parent FCC was already under pressure to sell billions of euros of assets due to Spain’s economic crisis.
Reporting by Michael Shields; editing by Greg Mahlich and Matthew Lewis