Swiss Steel on the Brink of Collapse: Financial Woes and Stock Dives
Swiss Steel’s Financial Crisis Deepens
Investors are losing confidence in Swiss Steel, as the stock has recently fallen by 20%. This drop follows months of consistent decline, shedding over 80% of its value from around 550 million francs to below 100 million francs. The situation is deteriorating quickly as reports suggest liquidity issues may threaten the company’s very existence.
Key Concerns and Predictions
Financial analysts warn that by next spring, Swiss Steel may fail to satisfy bank credit requirements, with losses expected to reach 120 million francs in the second half of the year.
- Outstanding loans of 220 million francs are linked to conditions that Swiss Steel might not meet.
- Equity must remain above 300 million euros.
- Net debt limits are jeopardized under current forecasts.
Stakeholders’ Reactions
Company spokesperson Anina Berger noted that expected growth may be delayed until 2025, indicating a challenging 2024 ahead.
- Cost-cutting measures and a new sales organization are planned for recovery.
- Unlike its rivals, Swiss Steel has yet to lay off workers, although many have been placed on reduced hours.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.