Siteserv in talks on debt restructure
DUBLIN-and-UK-listed Siteserv has confirmed it is in talks with its main lender, Irish Bank Resolution Corporation (IBRC), -- the former Anglo Irish Bank, about a possible debt restructuring.
Shares fell by 50pc yesterday to five cent each following the news. Share prices had already dropped from 20c each to 10c each on Friday.
The latest plunge means the business is now valued at little over €600,000 despite revenues of €90m last year. Shares in the company were once valued at €50m.
The latest share-price moves follow reports that talks between the firm and lenders could lead to a sale of the business for less than the €150m in debts owed by the business.
That would leave shareholders wiped out even though their stake was valued at €2.4m as recently as last Friday. In a statement Siteserv admitted it cannot rule out losses for shareholders under a deal.
Management says a deal with the bank that is already in place will run until December 2012.