Stocks News Europe: Italy's CIR lower on debt worries at energy unit
18/02/2014 10:12
Shares in Italy's CIR CIRX.MI fall 3.6 percent to the bottom of the FTSE Italia mid-cap index .FTITMC as the De Benedetti family's holding company says its loss-making energy unit, Sorgenia, has one month of financial autonomy should credit lines from banks not be restored. In recent months lenders have cancelled or frozen loans to Sorgenia, which is seeking a six-month freeze on debt payments to give it time to restructure its debt pile and turn round its business. "The company has one month's visibility if the lines are not reinstated and that's weighing on the holding group since Sorgenia has traditionally been its main asset and (CIR) could be called on to inject fresh cash," a Milan trader says. Sorgenia, which has debt of almost 1.9 billion euros, said on Monday the present impasse with the banks was causing financial stress that could "prejudice Sorgenia's ability to conduct its business activity" if it continued. Reuters messaging rm://stephen.jewkes.thomsonreuters.com@reuters.net Keywords: MARKETS EUROPE STOCKSNEWS