The Italian industrial conglomerate MAIRE, a major player in the global engineering and construction sector, faces a potential existential threat as a high-stakes court case unfolds in Russia. The litigation, filed by the Russian division of EuroChem, a leading chemical company, targets MAIRE’s subsidiary Tecnimont S.p.A. and its Russian operations. The total claims amount to approximately €2 billion, an amount strikingly close to MAIRE’s entire market capitalization, raising alarm bells across the company’s investor base and the broader European engineering industry.

The significance of this lawsuit cannot be overstated. MAIRE’s market capitalization currently stands at €2.1 billion, with free cash flow of €342.5 million and total debt of €1.2 billion. If the Russian court recognizes the claims filed by EuroChem, the company could face a technical default, compelling immediate repayment of all outstanding loans. In other words, the legal proceedings in Russia could potentially destabilize MAIRE’s financial structure, jeopardizing both its operational and strategic initiatives worldwide.

The scale of this legal threat has made international investors uneasy. Analysts warn that recognition of the €2 billion liability would leave the company with insufficient liquidity to meet immediate financial obligations. With free cash reserves barely above €340 million, MAIRE’s survival could hinge entirely on the outcome of the Russian court case. For a group with extensive global operations, this scenario is unprecedented and deeply concerning.

Despite the looming legal threat, MAIRE has continued to pursue aggressive international growth strategies. Its subsidiary NEXTCHEM, focused on sustainable chemical processes, recently secured €137.5 million in new loans, reflecting continued confidence from certain segments of the banking sector. Furthermore, the group approved a bond issuance of up to €300........

© Blitz