Italian Sea Group Plunges 37% as Losses Breach Legal Capital Threshold
Italian Sea Group Faces Financial Crisis After Share Capital Falls Below Legal Minimum
May 22 (Reuters) - Italian Sea Group's shares fell more than 37% on Friday after the luxury yacht maker said late on Thursday that debt-related financial losses had reduced its share capital below the legal minimum threshold.
Background and Causes of the Crisis
The crisis stems from coordinated misconduct by some senior managers, previously disclosed to the market, the group said in a statement.
Brands and Ongoing Assessments
The owner of Admiral, Tecnomar, Picchiotti and Perini Navi brands said the exact amount of losses was still being assessed, pending expert valuations and accounting reviews, and that it had reviewed guidelines for a turnaround plan aimed at preserving business continuity.
Key Elements of the Turnaround Plan
- The plan includes renegotiations with ship-owning companies to recover extra costs incurred on various orders, the revaluation of real estate assets and the possible disposal of some of the non-core ones
- The group said it would seek protective measures under Italy's Crisis and Insolvency Code, a procedure that can shield a business from creditor enforcement actions while it works on a restructuring plan
- It will prepare an updated financial position and call a shareholders' meeting
- "Visibility remains limited pending the finalisation of the budget and the completion of ongoing audits," brokerage Intermonte said in a note
- 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 and Editorial Notes
(Reporting by Philippe Leroy Beaulieu in Gdansk, editing by Milla Nissi-Prussak)
