voestalpine applies for credit guarantees worth EUR 300 million
Tuesday, 13 Oct 2009
Austrian Times reported that voestalpine has applied for EUR 300 million of attractive state credit guarantees.
Mr Peter Schiefer spokesman of voestalpine said that "The conditions, including the five-year duration of the guarantees, are attractive."
He claimed it had become increasingly difficult to get long term credit from Austrian banks, adding that the guarantees would be a precautionary measure that ensuring voestalpine's liquidity. He said that the firm would not engage in any acquisitions or in a capital increase in the near future and had no acute need for financing.
Mr Schiefer said that a decision on voestalpine's application by the Austrian Control Bank would probably occur within a few weeks. State guarantees would make it easier and cheaper for the firm to obtain credit from Bank Austria, Raffeisenlandesbank Upper Austria (RLB OO) and Oberbank.
Voestalpine recently announced that it would lay off an additional 175 workers at its seamless pipe plant in Lindbergh. It laid off 80 of the 1,000 workers there at the beginning of the year and put the rest into part time work in April. The firm said it would also extend the period of part time work at the plant.
