Italian Sea Group Eyes €100 Million Capital Increase After Court Protection
Italian Sea Group's Financial Challenges and Court Proceedings
Capital Increase Plans
July 7 (Reuters) - Troubled Italian yacht-maker The Italian Sea Group said on Tuesday it may launch a €100-million capital increase from the fourth quarter onwards.
Court Protection and Legal Measures
The company also said the court of Florence confirmed protective measures for four months starting July 1, and granted interim precautionary measures pending a July 22 hearing.
Impact on Shares and Contracts
• The Italian Sea Group's shares on Tuesday rose by as much as 8.7% following the announcement.
• As a result of the court's order, the yacht-maker's customers may not terminate the existing contracts due to any defaults by the shipyard, nor enforce issued guarantees.
• Key suppliers nearing order delivery will temporarily no longer be required to assign receivables to factoring companies.
Background: Financial Troubles and Restructuring Efforts
Seeking Court Protection
• On July 1 the Italian group said it would seek court protection from creditors after talks with clients ground to a halt, making a turnaround through an out-of-court restructuring process no longer possible.
• The yacht manufacturer entered a negotiated crisis settlement procedure in March after a series of governance and financial difficulties.
Share Capital and Turnaround Measures
• In May, it said debt-related financial losses had reduced its share capital below the legal minimum threshold and outlined turnaround measures, including possible asset disposals and contract re-negotiations.
Notable Incidents
• Italian Sea Group's Perini Navi built the Bayesian, which sank off Sicily in 2024, killing British tech entrepreneur Mike Lynch and six others.
(Reporting by Mirko Miorelli, editing by Alvise Armellini)