The Swiss Steel Group sold significantly less steel in 2023. (Image: Swiss Steel Group)
The large corporation based in Emmenbrücke recently denied rumors of an impending downfall. However, new documents paint a different picture.
editorial staff
Editorial team centralplus
There has been speculation for months about how ailing the major Swiss Steel corporation, based in Emmenbrücke, is. The “Inside Paradeplatz” portal wrote in January that the steel company was about to go into debt moratorium. Swiss Steel denied the rumors tozentralplus (zentralplus reported).
Now the “Tagesanzeiger” doubles down. According to the newspaper, a submission to the Takeover Commission should speak a different language. Liquidity has already fallen to a critical level and “intensive discussions” are being held with banks in order to obtain a capital increase.
Without a capital increase, insolvency would occur by May at the latest and thus the immediate cessation of all operational activities. The company also needs liquidity in order to be able to comply with the loan conditions. Termination of the loans would result in immediate insolvency, as the authority’s report states. This is also because a loan of 100 million euros, which has been extended several times, is due in May.
What is known is that the company is not doing well. The pandemic and the ongoing war in Ukraine and the associated consequences for the European economy have affected the large company. According to its own information, Swiss Steel made a loss of 295 million euros last year and needs another 300 million euros from its own shareholders. Net debt is currently around 800 million euros.
Sources used
- Press release Swiss Steel annual results
- Article in the “Tagesanzeiger”
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2024-03-17 07:54:16
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