Reuters: Bankruptcy News: UPDATE 1-FCC to take 289 mln euro hit on Alpine insolvency

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UPDATE 1-FCC to take 289 mln euro hit on Alpine insolvency Jun 19th 2013, 08:47 Wed Jun 19, 2013 4:47am EDT (Adds Madrid dateline, details, background) By Jose Elías Rodríguez VIENNA/MADRID, June 19 (Reuters) - Spanish builder FCC will take an after tax loss of 289 million euros this year after its Austrian unit Alpine filed for insolvency, the group said on Wednesday. Alpine, which employs around 15,000 staff, had net debt of 625 million euros in the first quarter and had been trying to renegotiate debt terms with creditors until Tuesday. FCC, Spain's fifth-biggest builder in terms of market and enterprise value, lost 140 million euros in the first quarter, partly because it wrote down losses in Alpine, which was suffering from government austerity programmes in the euro zone which put projects on hold. The Spanish group - whose full name is Fomento de Construcciones y Contratas - has had declining revenue for eight consecutive quarters as Spanish public sector contracts disappear in a deepening recession. Around half the company's revenues come from Spain. FCC shares fell 4.14 percent to 7.5 euros per share after the Alpine news. The share has lost 16.44 percent year to date compared with a 4.37 percent gain in the European construction sector index. FCC has a three-year plan aimed to reduce net debt by 2.7 billion euros by 2015 and focus its business on infrastructure, environmental services and water management. At end-December FCC's net debt was 7.3 billion euros. The insolvency process at Alpine could lead to the loss of 2,000 jobs, not including suppliers, Austrian news agency APA reported, citing Labour Minister Rudolf Hundstorfer. (Additional reporting by Michael Shields, Writing by Elisabeth O'Leary, Editing by Georgina Prodhan and Fiona Ortiz) Link this Share this Digg this Email Reprints

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