ALSTOM's bank debt climbed even further as reports suggested that Siemens, a German electrical engineering and electronics company, would participate in ALSTOM's restructuring. Emmanuelle Châtelain, an ALSTOM investor relations official, said the company was not considering incorporating Siemens into the restructuring plan. A Siemens spokesman declined comment.
Still, ALSTOM's '06 senior bank debt climbed up into the 85-86 range and its '08 subordinated loan was quoted in the 72-74 range. The company's '06 facility changed hands in the 81-83 range mid-April and the '08 credit was trading in the 68-70 range at that time. Last week, the company also received approval from its bank group to suspend financial covenant obligations until Sept. 30.
Châtelain explained that ALSTOM's priority is to receive approval from the European Commission for its financial package. That decision is expected to come sometime in May or June, she noted. Then, the company will continue negotiations with its banks regarding its credit facilities.