Spain's Service Point applies for creditor protection

Article(s) found on www.reuters.com

"Updated" article:

Thu Oct 24, 2013 1:49pm EDT

Spain's Service Point applies for creditor protection

Oct 24 (Reuters) - Indebted Spanish printing company Service Point Solutions SA has applied for creditor protection, it said on Thursday, after talks with its lenders failed.

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 creditors.

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 ago.

"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 million 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 debt.

The number of insolvencies to end-September in Spain rose 27 percent to 6,582 compared with 2012, according to ratings agency Axesor.

Service Point said it would inform the market when it had news on the process. ($1=0.7245 euros) (Reporting by Clare Kane; Editing by David Cowell and Greg Mahlich)

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Below is the first article that Reuters published about SP

MADRID | Thu Oct 24, 2013 11:21am EDT

Spain's Service Point in last-ditch creditor talks

Oct 24 (Reuters) - Spanish print company Service Point Solutions S.A. said on Thursday it was still talking to creditors after banks rejected its proposals to buy back debt and that it had not ruled out applying for protection from creditors.

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 ago.

"The company is continuing conversations today to find a refinancing solution with the banks and at the same time is analysing the possibility of starting pre-insolvency proceedings for Service Point Solutions S.A.'s holding company," the firm said in a stock market notice.

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.

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 million 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 debt.

The number of insolvencies to end-September in Spain rose 27 percent to 6,582 compared with 2012, according to ratings agency Axesor. ($1 = 0.7256 euros) (Reporting by Clare Kane; Editing by David Cowell)