VIENNA, June 7 (Reuters) - Alpine, the Austrian unit of Spanish construction group FCC, needs more bridge financing from creditors and has drawn up a new business plan given delays in planned asset sales, it said.
Alpine is struggling as government austerity programmes in the euro zone put construction projects on hold, adding to the woes of parent FCC, which is under pressure to sell billions of euros of assets amid recession in Spain.
Alpine said the sale of its energy, renovations and special underground construction units were taking longer than expected, and it had put together a new business plan as a basis for negotiations with its creditors about bridge financing.
It did not provide details of the new plan.
“Based on the support of the shareholder and positive negotiations with the financing partners, the issuer continues to assume its ability to satisfy its financial obligations,” Alpine said in a statement late on Thursday.
Alpine lost 450 million euros ($594 million) last year as it began to exit unprofitable projects abroad. Its creditors, who include Erste Group and UniCredit Bank Austria , took a 150 million-euro haircut this year.
$1 = 0.7579 euros Reporting by Georgina Prodhan; Editing by Mark Potter