Technos starts talks with creditors

Technos starts talks with creditors

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Brazilian watchmaker Technos said it has started talks with its main creditors and suppliers "to protect its financial health" during the COVID-19 pandemic.

"These discussions include the renegotiation of overdue agreements and agreements that are not due yet to adjust the debt profile of the company and its liquidity structure, protecting its financial and operational capacities," Technos said in a securities filing from Monday night.

Technos also said its earnings have faltered as the coronavirus pandemic has taken a toll on the retail sector since it started in mid-March.

The company did not say how much debt it could restructure in talks with creditors, but it listed BRL115 million ($21.3 million) in total debt and BRL53 million in cash at the end of the first quarter this year. It also reported a net loss of BRL17.4 million in the first quarter as net revenues slumped 33.4% year-on-year to BRL41.9 million, according to its latest financial statement.

Shares in Technos fell 1.31% on Tuesday to close at BRL1.51 on the B3 stock exchange in São Paulo.