EuroAPI appoints mediator to help restructure pile of debt
07/06/2024 07:23
By Nathan Vifflin
June 7 (Reuters) - French pharmaceutical supplier
EuroAPI EAPI.PA has engaged a third-party mediator, known as a
mandataire ad hoc, to handle financing discussions with
creditors as it struggles to serve a growing pile of debt.
WHY IT'S IMPORTANT
EuroAPI, which was spun off from French drugmaker Sanofi
SASY.PA in 2022, becomes the latest European company to face
financing difficulties after a period of high interest rates and
slow business.
The company's fate deteriorated when it announced a pause in
production at its Brindisi site in Italy, which suspended its
outlook for 2024.
CONTEXT
EuroAPI started discussions with creditors in February after
the company's net debt surged to 171.0 million euros ($186.18
million) at the end of 2023 from 25.6 million euros the previous
year.
On Thursday, EuroAPI said it is eligible for up to 1 billion
euros in European Union funds dedicated to the pharmaceutical
sector.
Shares of EuroAPI were down 32.3% year-to-date to 3.88 euros
ahead of the previous session's close. The shares have fallen
69% from their stock market debut price of 12.5 euros two years
ago.
($1 = 0.9184 euros)
(Reporting by Nathan Vifflin; Editing by Jan Harvey)
((gdansk.newsroom@thomsonreuters.com))