French engineering group Alstom has warned it could violate the terms of a bailout plan that rescued it from bankruptcy last year.
The maker of TGV trains, cruise ships and gas turbines said extra charges, for restructuring and for glitches linked to a US boiler contract, had forced it to cut key profitability and cashflow forecasts for the current year.
If the lower forecasts are confirmed, Alstom would have to amend covenants with its banks, calling into question a €4.7 billion bailout signed last year with the banks and the French government.
The news sent Alstom's stock down 14 per cent and dealt the firm's credibility a blow just as it had started to win back customers and convince investors it was over the worst.
Analysts said that although Alstom's banks were unlikely to pull the plug on the company with its debts of €5 billion, the profit warning raised further questions about its long-term viability and the chances of another major cash call.