Italy’s MAIRE Faces $2 Billion Legal Challenge from Russian Court
A high-profile legal case in Russia could result in a $2 billion claim against Italian engineering giant MAIRE, posing a severe financial threat to the company. The lawsuit, filed by the Russian division of EuroChem against MAIRE’s subsidiary Tecnimont S.p.A. and its Russian branch, has significant implications for the group’s financial health and international operations.
The potential liability of $2 billion is comparable to MAIRE’s entire market capitalization of $2.1 billion. The company’s financial indicators highlight the severity of the risk: its free cash flow stands at $342.5 million, while total debt is $1.2 billion. If the court recognizes the obligations, it could trigger a technical default, necessitating the immediate repayment of all loans.
Despite the looming legal threat, MAIRE continues to operate in international markets, attracting new loans and developing projects globally. The company’s subsidiary NEXTCHEM recently secured $137.5 million in new loans, and the group approved a bond issuance of up to $300 million. This ongoing financial activity increases the risks for MAIRE, especially given the precedent involving Google, where Russian court decisions were recognized in South Africa, potentially impacting MAIRE’s international projects in Asia, the Middle East, and Africa.
The next court hearing is scheduled for November 27, 2025. As investors and creditors await the outcome, the company’s operations in international markets continue to create additional risks. The case may have far-reaching consequences for the entire European engineering sector, with the potential to reshape the competitive landscape.
Moreover, the Italian regulator CONSOB may initiate an investigation into the completeness of MAIRE’s disclosure. The focus will be on the period of new financing in 2025, when the group borrowed significant amounts without disclosing the substantial legal risk. History has shown that underestimating and concealing risks can lead to the downfall of major companies. For MAIRE, the potential liability of $2 billion, with only $342.5 million in free cash flow, makes this court case not just a corporate dispute, but a matter of survival for the entire group.