Shares in Eniro tumble after creditor pressure
Eniro's largest creditors may be taking over the company.
• Eniro's CEO sacked after share price collapse
Eniro AB, the biggest yellow-pages publisher in the Nordics, may be forced to raise 2.5 billion kronor ($365 million) through a share sale to avoid its creditors taking over the company, business daily Dagens Industri said Wednesday.
The company’s stock shares were down 36 percent in midday trading. Compared to a year ago shares are down 85 percent after its outlook has been slashed repeatedly.
The Stockholm-based company’s largest creditors – SEB, Svenska Handelsbanken, Nordea, Swedbank, Danske Bank, DnB NOR and Royal Bank of Scotland – have lent Eniro a total of 6.4 billion kronor. They now demand that the company raises new money. If Eniro fails to do so, the banks may convert their loans into Eniro shares and take it over, the newspaper said, citing unidentified people with knowledge of the discussions.
"Eniro confirms that negotiations are ongoing with its lending banks, including discussions around the company's capital structure", the company said in a statement in response to the media report.
Earliert his month Eniro sacked its CEO Jesper Kärrbrink and said it would review its financial targets as the search industry has been hit by deep-seated structural changes.
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Last Updated (Wednesday, 22 September 2010 10:38)




