The global crisis is battering Benny Steimetz's companies. Turnkey energy and chemicals projects contractor Bateman Litwin NV (AIM:BNLN), held through BSG Resources Ltd., today announced that it "is reviewing potential disposals of one or more parts of the business."
The company added, "To this extent, the board has received several indicative proposals for various units of the business. Discussions are ongoing with a number of parties but there can be no guarantee that any divestment will result."
Bateman Litwin did not mention which units might be up for sale, but the intent to sell implies liquidity problems at the company.
Bateman Litwin estimates its revenue for the 2008-09 fiscal year at $735 million, and said that its backlog fell to $735 million from June to $570 million at the end of August, due to a suspended project.
The company also said that it had $32 million in cash at the end of its fiscal year in June (a low figure for a company that handles projects worth hundreds of millions, and even billions of dollars), down from $69.8 million a year earlier.
The company's gross debt rose to $89 million at the end of June from $46.7 million a year earlier. "Our banks remain generally supportive as evidenced by the group successfully gaining waivers for loan covenants that were in breach. The group’s cash position is a critical focus for management and the board," it said.
Bateman Litwin's share plummeted 21% on London’s Alternative Investment Market (AIM) today to ₤0.13, giving a market cap of ₤15.7 million. The share has fallen 70% in the past year.
Steinmetz's Eastern European development arm, Scorpio Real Estate Ltd. (TASE: SCRP.B1), is also in trouble and will probably have to reach a settlement with its bondholders. No such settlement seems likely at the moment. A bondholders meeting is scheduled for Tuesday, after Yom Kippur. The first payment on the bonds, of NIS 133 million, is due in January, and the company has just NIS 120 million in cash, after losing NIS 223 million in the first half of 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on September 23, 2009
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