Kvaerner May Declare Bankruptcy, Report Says
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Kvaerner may have to declare bankruptcy as soon as today because it’s struggling to secure shareholder backing for a planned share sale, the Financial Times reported in its online edition, citing unidentified sources.
The Norwegian oil-equipment company said last week it expects existing shareholders to inject as much as $232 million in a rights offer aimed at keeping it in business as banks hesitate to lend.
The company’s board was considering on Sunday whether to seek bankruptcy because it’s had trouble getting guaranteed backing from shareholders--a prerequisite for it getting long-term financing, the paper said.
Oslo-based Kvaerner in July said profit may drop this year because of cooling U.S. demand and a legal dispute related to a zinc plant built for CalEnergy Minerals.
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