(In Oct 24 story, corrects net loss for H1 in 7th paragraph to
834,000 euros, not 834 million euros)
MADRID Oct 24 Indebted Spanish printing company
Service Point Solutions SA has applied for creditor
protection, it said on Thursday, after talks with its lenders
The company said earlier on Thursday it was talking to
creditors after banks rejected its proposals to buy back debt
and that it had not ruled out applying for protection from
Service Point, which operates in several countries including
Britain, the United States and the Netherlands, is the latest
company in Spain to find itself on the edge of insolvency since
banks tightened credit in the wake of a housing bust five years
"The company will continue working to reach an agreement
that will allow the restructuring of its balance sheet to
protect shareholders, creditors and employees," Service Point
said in a statement.
Spain's stock market regulator, the CNMV, earlier suspended
trading in the group's shares, which had fallen 7.4 percent on
Thursday to 0.37 euros, valuing the company at around 65 million
euros ($90 million), according to Thomson Reuters data.
Shares in Service Point, which has 111 million euros ($153
million) of debt, have fallen close to 90 percent since 2007
highs of 3.2 euros.
The company reported a net loss of 834,000 euros for the
first half of 2013. Service Point took several steps to support
the business, including changing the management team in Britain,
which brings in a quarter of sales and exiting France, and said
the second half of the year would look brighter.
Last week Spanish white goods company Fagor filed
for protection from creditors, while also trying to refinance
The number of insolvencies to end-September in Spain rose 27
percent to 6,582 compared with 2012, according to ratings agency
Service Point said it would inform the market when it had
news on the process.
(Reporting by Clare Kane; Editing by David Cowell and Greg