Cimos has been teetering on the brink due to high debt and has been selling off non-core assets to deleverage. Yet the sale of its most prized asset, hydro turbine maker Litostroj Power, has been dragging on for over a year.

Business daily Finance reported today that Cimos has negative equity of EUR 73m and unofficially ended 2013 with a net loss of EUR 135m due to massive write-downs on loans to subsidiaries.

In 2012 the company posted whole-year group loss of EUR 97m.

The paper says its outstanding financial debt is about EUR 400m, while ongoing debt restructuring talks with Slovenian creditors affect about EUR 350m.

According to plans obtained by Finance, around EUR 180m is to be converted into equity.

Cimos received a state guarantee worth EUR 35m in mid-2013 in an effort to save thousands of jobs in Slovenia.

As one of the biggest companies whose non-performing loans have been transferred to the Bank Assets Management Company (BAMC), it is also seen as a test case of corporate deleveraging, which the government has made a priority after the state-owned banks were bailed out.