Fantuzzi group has confirmed that it has drawn up arbitration proceedings in order to dispute the validity and legal basis of the unilateral “termination” by Terex "of the definitive agreement entered into on 8 August 2008"
Despite the arbitration plan, Fantuzzi group also said, in a statement issued from Reggio Emilia on 29th January, “that ongoing discussions with Terex Co and meetings are taking place with all the involved parties, to see whether the dispute can be settled amicably and without any further delay, and therefore allow the transfer to Terex Co of Fantuzzi group’s industrial operations.”
Fantuzzi group added, however, that negotiations are underway with other potential investors.
Fantuzzi Group also stated, that based on the above-mentioned actions and information, it has taken appropriate steps to convene a meeting of all its creditors (banks, JP Morgan and bondholders), according to the formalities and timeline applicable to each of them, in order to “facilitate the achievement as soon as practicable by such creditors of a positive solution to the current situation.”
The final tranche (E55M) of the Eurobond, originally dating from 2001, that it had renegotiated in 2004 should have been repaid during July 2008. At that time Fantuzzi was in the final stages of sale negotiations with Terex and in August the deadline was extended to the end of January 2009.
On 3rd February, Fantuzzi Group issued a second statement. This advises that a first meeting of bond holders has been scheduled for 24th February (venue not disclosed, but the one last August was in London) and a second meeting will be convened not less than 14 days later.
From Fantuzzi Group's side, the purpose of the meeting(s) is to obtain a further extension of the pactum de non petendum, until 31 July 2009. This will give it time to sort out a sale, either with Terex or with one or more of the other interested parties.
For the record, this statement says that the bond figure in question is E50M, originally due on 16 July 2008.
