Default Claims Wipe 40% Off Firm That Once Towered Over Denmark

Investors just delivered a body blow to a company that was once Scandinavia’s biggest conglomerate, Bloomberg News reported. On Monday, the last remnant of the East Asiatic Company of Denmark lost more than 40% of its market value after a key creditor said it breached debt covenants. The development represents an existential threat to EAC, now called Santa Fe Group A/S, and has left in tatters what was once an icon of corporate Denmark. Gabriella Sahlman, an investment director at Proventus Capital Partners, told Bloomberg that the creditor thinks “there is a breach of covenants. We think it’s a very serious situation. What happens next depends on what Santa Fe does. It’s too early to speculate on what might happen.” Read more

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