Creditors of Alpina are going to convert liabilities of between €5 million and €15 million into shares in the Slovenian shoe manufacturer under a proposal that has been approved by the local District Court in Kranji to restructure its debt, which amounts to more than €42 million. A court-appointed receiver will go over their claims in the next days.
According to local reports, Alpina's management made the proposal after its failure to renegotiate its debt with the banks. A top manager of the company was quoted as saying that Alpina will be able to pay back half of its bank debt in the next ten days based on the latest results.
The parent company in Slovenia is projecting an operating profit of €1.2 million and a net profit of €340,000 on sales of €49.6 million for this year. Sales rose by 10 percent in the first four months of 2014 and operating losses were reduced.
Alpina produces about 1.7 million pairs of shoes annually including women's shoes, some hiking boots and more than 400,000 pairs of cross-country ski boots. At the end of 2012, it also managed 131 stores in Slovenia and five other neighboring countries.