A net Euros120M will be raised, mainly from a key property sale
Luciano Fantuzzi, the chairman of Fantuzi Noell group, has reached a preliminary agreement to sell the historic Reggiane production site at Reggio Emilia and use the proceeds to pay the last tranche of the Bond taken out in 2001 and to recapitalise the company, in line with the multi-year business plan agreed with creditors in 2005.
Heads of agreement to sell for E130M the 250,000 m2 site, which is no longer used for major production activities, have been reached between Fantuzzi Immobiliare (the Fantuzzi family-owned property arm) and Valore Reale, a Milan-based property company. In addition, Mr Fantuzzi will use E20M of his own money, to raise a total of E150M that, net of E30M of associated debt owed by Fantuzzi Immobiliare, will raise a total of E120M.
Of this, E55M will pay off the last tranche of the 2001 Bond that falls due this July and the balance of E65M will go into Fantuzzi Noell group’s coffers to put it on a much stronger commercial footing, sustaining the full product range and production at the existing facilities in Italy, Germany and China.
