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 Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

INTERSCHALT Expands Africa, Asia Service Networks

INTERSCHALT maritime systems AG, the provider of maritime software, services and supplier of Voyage Data Recorders (VDR 4G[e] and s-VDR) has expanded its network

Access to Brazil's Itajai Port to Open as Truck Protest Ends

Protesters have agreed to open access to Brazil's main poultry exporting port of Itajai in Santa Catarina state, the port said on Wednesday, ending a lingering

E-marine Begins Fleet Expansion

E-marine, a provider of submarine cable installation and repair solutions in the Middle East and Sub-Continent region, has unveiled plans to expand its fleet of cable ships in 2015,

Finance

Ten Migrants Die in Mediterranean, a Thousand Rescued

At least 10 North African migrants died when their rubber boat overturned in the southern Mediterranean while almost a thousand more from a total of seven vessels

Access to Brazil's Itajai Port to Open as Truck Protest Ends

Protesters have agreed to open access to Brazil's main poultry exporting port of Itajai in Santa Catarina state, the port said on Wednesday, ending a lingering

Seadrill: Rig Rates Have Not Bottomed

The market for oil and gas drilling rigs continues to deteriorate as oil companies cut back on investments, Seadrill Chief Financial Officer Rune Magnus Lundetrae

Energy

BG Group's Australian Project Helping to Double LNG Supplies

A smooth start to operations at BG Group's Australian project in Queensland is expected to help the British company to roughly double its liquefied natural gas (LNG) supplies in 2015/16,

Seadrill: Rig Rates Have Not Bottomed

The market for oil and gas drilling rigs continues to deteriorate as oil companies cut back on investments, Seadrill Chief Financial Officer Rune Magnus Lundetrae

Ghana-Ivory Coast Maritime Dispute Mar Tullow

A dispute over maritime boundaries between Ghana and Ivory Coast is damaging Tullow Oil, which risks postponement of its TEN project in the waters off Ghana's coastline.

News

Ten Migrants Die in Mediterranean, a Thousand Rescued

At least 10 North African migrants died when their rubber boat overturned in the southern Mediterranean while almost a thousand more from a total of seven vessels

Harbor Police Rescues Stranded Sea Lion

Sea lions are a common sight in San Diego Bay, but a sea lion wandering a busy roadway and then ending up in the back of a patrol car is slightly rarer.   The

CaroTrans Adds New Asia-US Service

CaroTrans, a global NVOCC (non-vessel operating common carrier) and ocean freight consolidator, announced a new all-water LCL (less than container-load) import

 
 
Maritime Security Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2634 sec (4 req/sec)