The management board of Italian property developer Risanamento has approved a debt restructuring plan which will enable it to receive a EUR 150 mln cash injection, the company said in a statement late on Monday.
The management board of Italian property developer Risanamento has approved a debt restructuring plan which will enable it to receive a EUR 150 mln cash injection, the company said in a statement late on Monday.
The agreement on the plan, under which Risanamento will restructure EUR 350 mln of debt into a convertible bond maturing in 2014, comes ahead of a court hearing on July 29. At the court hearing, Risanamento must present a convincing debt reduction plan in order to avoid bankruptcy.
Risanamento has also named Vincenzo Mariconda as its new chairman. It may appoint Luigi Roth, current chairman of Terna Rete Elettrica Nationale SpA and of Fiera Milano SpA’s foundation, as its new chief executive officer, Corriere della Sera reported, without saying where it got the information.
Risanamento, controlled by the property tycoon Luigi Zunino, is struggling to manage some EUR 2.8 bn in net debt. A slump in the Italian property market due to the credit crisis has left its most high-profile project - a huge housing and office complex on the outskirts of Milan - unfinished.
According to Risanamento’s website, the company has a property portfolio of 2.5 mln m2 with a value of EUR 5 bn.
