SPAIN: Regulator warns La Seda de Barcelona could go bankrupt
Spanish textile fibres firm La Seda de Barcelona could go bankrupt if it fails to raise EUR300m (US$376m) share offering, the country' stock market watchdog CNMV said on Friday.
Its comments came as it lifted a trading suspension on La Seda's shares on 5 July after enacting it on 5 June 2009.
In a statement, La Seda said it will launch the offer on 19 July for which existing investors have committed EUR100m. As part of the transaction, the company hopes excising creditors will exchange up to EUR150m of debt into equity.
If it fails to raise the funds in their entirety, La Seda would fail its restructuring plan and likely be forced into bankruptcy, the regulatory noted.
Plagued with heavy debt, LSB launched a restructuring plan last year which the firm said has gone up to plan.
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