Italy's troubled property developer Risanamento has reached a number of deals with its creditor banks as it works to stave off bankruptcy. The Milan-based firm was given the green light by its banks on a restructuring plan which will see some of Italy's major financial institutions take control of the company in the next few weeks in return for a EUR 500 mln refinancing agreement.
Italy's troubled property developer Risanamento has reached a number of deals with its creditor banks as it works to stave off bankruptcy. The Milan-based firm was given the green light by its banks on a restructuring plan which will see some of Italy's major financial institutions take control of the company in the next few weeks in return for a EUR 500 mln refinancing agreement.
The agreement includes a EUR 150 mln injection through a capital increase to be carried out at a price of EUR 0.45 per share and the granting of a EUR 350 mln loan.
The group's banks have been exempted by Italian stock market regulator Consob from making a takeover bid for the company.
The lenders also approved the refinancing of EUR 272 mln of long-term debt to repay the convertible bond issued by Risanamento in 2007. The financing will expire on December 31, 2014, Italian newspapers reported this week.
Risanamento, which is saddled with EUR 2.85 bn in debt, saw losses widen to EUR 171 mln in the first six months of 2009 from a loss of EUR 80 mln a year before. The company is expected to present the restructuring plan to the Milan bankruptcy court in the next few days.
