Overview
- Tubos Reunidos told Spain’s market regulator Monday that its viability is at risk and that it may seek a voluntary insolvency filing if it cannot secure funding or partnerships.
- The stock fell roughly 37% to 40% Monday, with shares near €0.14, as investors reacted to the warning about a possible court-led restructuring.
- The company says talks with the state holding SEPI and its banks have not produced a debt deal, and it has not obtained new short-term funding or a strategic partner.
- A 2019 convertible-debt setup could hand creditors about 95% of the company if refinancing fails or an insolvency proceeds, sharply diluting existing shareholders.
- Operations have been hit by job cuts and strikes, including a halt at the Amurrio plant, after an employee layoff plan stalled, adding strain to cash flow alongside €263 million in debt and a €118 million loss.