Risanamento reaches preliminary agreement on EUR 75m financing

Italian property developer Risanamento said it has sealed a preliminary term-sheet agreement with banks regarding a credit line of up to EUR 75 mln. The banks providing the facility are Intesa Sanpaolo, Unicredit Corporate Banking, Banca Popolare di Milano S. coop. and Banca Monte dei Paschi di Siena, it added.

In a statement, the troubled Italian developer pointed out that the agreement is indicative and not exhaustive of the 'revolving credit line terms and conditions whose drawdown is being conditioned by the approval by at least 65% of the above-mentioned financing banks of a standstill agreement regarding the Risanamento Group bank indebtedness.'

In July this year, the group confirmed it had received a letter of intent from the Dubai fund Limitless for the purchase of its vast redevelopment of the Falck steel factory in Sesto San Giovanni, and its large redevelopment plan in Milano Santa Giulia.

Risanamento, which is headed by Luigi Zunino, put up to EUR 1 bn of assets on the market in May to help improve its debt situation, which at the end of 2007 stood at EUR 2.5 bn.