The Ferretti Group, which defaulted on an interest payment earlier this year, issued a statement yesterday regarding its attempts to restructure its debt:
Ferretti S.p.A. announces that it is in advanced negotiations for the restructuring of the group’s indebtedness. Once the proposal is agreed, it will be circulated to all the lenders with a view to being approved as soon as possible.
Once accepted by the lenders, the proposal would provide for an injection of new equity by some key managers of the Ferretti group – led by the Chairman and Chief Executive Officer Norberto Ferretti – and a primary financial investor, as well as the provision of new credit lines in favour of the Group. Overall, the Group’s debt burden would be reduced.
On the terms proposed, Candover and Permira will not participate in the restructuring of Ferretti S.p.A. and will not be part of the shareholding structure of the Group going forward.
The Chairman and Chief Executive Officer Norberto Ferretti and the key managers expressed their full satisfaction with the negotiations to date and confirmed their commitment to work towards finalising the proposal and then its successful and prompt implementation.
According to a report by Bloomberg News this afternoon, Ferretti may receive $114 million in cash from its managers and Mediobanca, an Italian investment bank. If the deal is approved, Mediobanca will gain about 10 percent ownership, the article states, while Norberto Ferretti and a team of others will invest funds to obtain about 40 percent of the company. An additional group of creditors, led by Royal Bank of Scotland, will convert some debt to equity, leaving them with about 50 percent of Ferretti.
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