A Milan court has given the long-awaited go-ahead for the restructuring of Italian troubled real estate developer Risanamento. The court ruled that a EUR 500 mln debt restructuring programme, combined with the issue of EUR 350 mln of convertible bonds, was sufficient to keep the company afloat for the coming months.
A Milan court has given the long-awaited go-ahead for the restructuring of Italian troubled real estate developer Risanamento. The court ruled that a EUR 500 mln debt restructuring programme, combined with the issue of EUR 350 mln of convertible bonds, was sufficient to keep the company afloat for the coming months.
The court decision came in response to a request made by a state prosecutor in July to declare the real estate developer bankrupt. Risanamento is saddled with EUR 2.85 bn of debt.
After several rounds of negotiations, Risanamento and its five creditor banks agreed in September on a bail-out plan which will see the rescuer lenders take control of the company via a EUR 150 mln capital increase and the EUR 350 mln convertible bond issue. The company's main creditors include Italy's largest banks Intesa Sanpaolo and Unicredit.
The plan also envisages the sale of Risanamento's main development projects in Milan's Santa Giulia and the Falck area.
The Milan-based developer saw its losses widen to EUR 213 mln in the first three quarters of the year, a 26% increase on last year's figure. In a statement on Saturday, the company said its turnover rose to EUR 105 mln in the first nine months of 2009 from EUR 60 mln the year before.
