Creditor Banks Could Become Main Investors in Sorgenia

Monday, March 03, 2014

Reuters - Creditor banks could become majority investors in Italy's Sorgenia as the owners of the energy company took a step closer on Monday towards a deal on debt restructuring, three sources close to the matter said.

Sorgenia, for years the main asset of the De Benedetti family's holding group CIR, has run up debts of 1.8 billion euros ($2.48 billion) after buying modern gas-fired power plants which are now underused due to the economic crisis and the rise of renewable energy sources.

Creditor banks had been trying to get CIR to pay half of the 600 million euros of debt that must be cleared to keep the business afloat but the holding has offered 100 million euros.

The banks recently indicated they could be prepared to accept a cash injection in the region of 150 million euros in return for which they would convert debt into equity to the tune of 300 million euros.

"Progress was made this morning and the two sides drew a step closer even if there's still a way to go," one source said.

The source added a deal which saw creditors converting 300 million euros of debt into shares would leave them with around 67 percent stake in Sorgenia and CIR around 33 percent.

Representatives from Sorgenia and CIR met the banks on Monday morning to try to narrow the distance between them.

"It was a fairly positive result," a second source said, adding Sorgenia was scheduled to hold a board meeting on Wednesday.

A third source said it was still an ongoing process. "Everyone's talking about positions of the two sides converging. The structure of the deal is not a problem and we're almost there on how much CIR will put up. The real problem is the conversion of debt into equity instruments," the source said.

Sorgenia owes money to about 20 Italian and foreign banks. Its main creditor is the troubled Banca Monte dei Paschi di Siena while other creditors include Intesa Sanpaolo and UniCredit.

Austrian utility Verbund holds 46 percent of the energy company but has written off the value of the stake and said it is not ready to inject any more cash into the venture.

CIR, which is a major shareholder in leading Italian publisher L'Espresso, declined to comment. Monte Paschi, UniCredit and Intesa also declined to comment.

($1 = 0.7260 euros)

(Reporting by Stephen Jewkes, Giancarlo Navach and Paola Arosio)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

No Clues on Hanjin's Financial Health

Cash-strapped Hanjin Shipping Co. sources say that the negotiations with tonnage providers for lower rates are undergoing, but wouldn't say much else.   According to Korea Herald, the country's No.

DP World's H1 Volumes Rise

Ports operator DP World reported on Tuesday first-half 2016 gross container volumes up 1.2 percent on a like-for-like basis and up 2.5 percent on a reported basis.

Samil PwC Okays Hyundai's Management Improvement Plan

Hyundai Heavy Industries (HHI) is notified by Samil PwC, a local member of the global accounting firm PwC, that its 3.5 trillion won worth management improvement

Finance

Scorpio Bulkers books Net Loss

USA-Monaco based bulk carrier Scorpio Bulkers has reported a loss of $24.7 million in its second quarter of 2016, pushing the carrier's deficit up to $ 83 million.

Diana Containerships in Red, Suspends Dividend

Greece-based Diana Containerships Inc. has reported a second-quarter loss of $8 million, after reporting a profit in the same period a year earlier.   The shipping

DP World Eyes Taiwan Port

Global marine container terminal operator DP World  will help to expand the development of Kaohsiung Port’s Terminal 7, which is owned by the state run Taiwan International Ports Corporation (TIPC),

Energy

Summer Cruise to North Sea Oil Rigs Amazes Tourists

Bored with palm-fringed beaches and turquoise seas? Then the gigantic oil platforms of the North Sea beckon. The first ever "rig-spotting" cruise just ended off the coast of Norway,

Technip Bags Woodside's Subsea Contract

Technip has been awarded a large(1) subsea contract by Woodside to support the development of the Greater Enfield Project offshore Western Australia, at a water

Staying Afloat Down Under?

In recent years, Australia has been a major growth area for offshore gas production and a key driver of offshore CAPEX, says Clarksons Research.   However, the

News

Scorpio Bulkers books Net Loss

USA-Monaco based bulk carrier Scorpio Bulkers has reported a loss of $24.7 million in its second quarter of 2016, pushing the carrier's deficit up to $ 83 million.

Cambodia Urged ASEAN to Avoid Words That Escalate Tension

Cambodia advised a grouping of South East Asian nations to avoid using words that "would escalate tension between China and the Philippines" in a weekend statement,

Technip Bags Woodside's Subsea Contract

Technip has been awarded a large(1) subsea contract by Woodside to support the development of the Greater Enfield Project offshore Western Australia, at a water

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Offshore Oil Pipelines Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1320 sec (8 req/sec)