Hungary’s E-Star Alternatív financing difficulties, shares dropped
E-Star Alternatív Nyrt (ESTAR), a Hungarian energy company, fell after saying that payment demands from suppliers ahead of a bond maturity this month is threatening its operations.
The shares dropped 5.8% to HUF 420 by 10:43 a.m. in Budapest, extending their decline this year to 90%.
E-Star is facing operational difficulties “on a daily basis” as some suppliers seeking payment have asked to liquidate the company, according to an E-Star statement to the Budapest Stock Exchange filed late Monday.
“The firm’s liquidity and financing situation seems more than challenging,” Péter Szentirmai, a Budapest-based analyst at KBC Groep NV (KBC)’s broker unit, wrote in a research report today.
Earlier this month, the company announced a plan to terminate contracts with municipalities after an audit by Deloitte had shown that the bulk of receivables from municipalities led to mounting liquidity problems.
For further analysis on E-star's struggle click here
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.