By Irene García Pérez and Luca Casiraghi
(Bloomberg) — Spanish papermaker Lecta SA’s bonds plummeted 15% to a new record low on Thursday after the company said it hired Evercore and Rothschild & Co. as advisers to review its debt. The CVC Capital Partners-owned firm is also engaging with a financial adviser representing a group of creditors, the company said in a statement.

Lecta’s 375 million euros of notes due in August 2023 fell about 6 cents on the euro after the announcement, to 33 cents, according to data compiled by Bloomberg.
The firm has struggled as demand for coated paper declined, resulting in overcapacity in the industry. It reported a drop in earnings earlier on Thursday, which it blamed on lower sales and higher outsourcing costs. 
“We are highly skeptical on the company’s ability to find the necessary funding to support its diversification, while the main shareholder CVC is not likely to inject new money,” Spread Research analyst Joan Sehim wrote in a note. “We believe that Lecta will need to raise new credit lines in coming quarters to maintain sufficient liquidity,” he said.