EuroAPI appoints mediator to help restructure pile of debt, shares drop (updated)

Euroapi SA

07/06/2024 08:40

(Updates with market reaction segment)
    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.
    
    MARKET REACTION
        The shares fell 7.2% to 3.6 euros at 0718 GMT to the
bottom of Paris' SBF120 index  .SBF120 .
  

    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.
    Including today's fall shares of EuroAPI are down 37.17%
year to date. The shares have fallen 71% 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 and Jason
Neely)
 ((gdansk.newsroom@thomsonreuters.com))