(BN) Atalian Bonds Fall on Concerns Asset Sale Program May Slow (October 2019)2019-10-10
By Irene García Pérez
(Bloomberg) — La Financiere Atalian’s notes plunged on Thursday on concerns its asset disposal plan could slow down.
The French maintenance firm’s 625 million euros ($688 million) of bonds due May 2024 fell to 70 cents on the euro on Thursday, according to data compiled by Bloomberg.
A hearing on a petition filed by U.K tax authorities last month to wind up a unit of Getronics BV, a company in which Atalian owns a 29% stake, is due on Oct. 16. Selling the stake is considered key to Atalian’s asset sale program. Separately, Debtwire reported on Wednesday that Getronics is looking for additional financing to ease liquidity pressures.
“A sale of the stake could have an immediate impact on Atalian’s deleveraging, but financial problems at Getronics could delay the process,” Benjamin Sabahi, head of credit research at Spread Research, said in an email. Representatives for Atalian and Getronics didn’t return calls and emails seeking comment.
Atalian said in June it was seeking to dispose of as much as 200 million euros of assets by the end of 2020, according to a presentation. Atalian is seeking to reduce its net debt-to- earnings ratio to 4.5 times at the end of 2021, down from about 6 times, it said at the time.