On September 28, Astaldi announced that the delay in the sale process of the Third Bosporus Bridge, due to Turkey’s political and economic and financial events, has required the adjustment of the entire capital and financial strengthening Plan. The delivery of a binding offer for the sale of the Third Bosporus Bridge was set forth as one of the conditions precedent of the formation of the Underwriting Syndicate of the capital increase.
To preserve and protect the company’s assets as well as the interests of the stakeholders, and to safeguard the business by allowing the continuity on Italian and foreign operations, the Board of Directors of Astaldi assessed and resolved to file with the Court of Rome the application for the composition with creditors “with reservation”, a legal process in Italy which allows companies to continue their business.
As a result of these events, Astaldi says that the targets set in the 2018-2022 Strategy Plan are no longer achievable. This crisis led to delays in the start-up of some newly-secured contracts, in the collection of some advance payments and in the regular progress of some projects.
During the process of composition with creditors “with reservation”, the Astaldi will be able to carry on its operations on a going concern basis, continuing, among other things, to work on contracts under construction and to take part, in the manners authorised by the law, to new tenders. It is in advanced stage the study of a new business continuity plan from the company, with the support of its advisors, according to Italian Insolvency Law.
This plan shall be filed with the Court by the term provided for by the Italian Insolvency Law as to obtain the Court’s statement of eligibility as well as the approval by the creditors.
The plan is focused on safeguarding the business activity (and, as a consequence, the creditors as a whole), with particular reference to foreign operations.
Thus, Astaldi’s preliminary restructuring plan includes the leasing of its business units to two newly-incorporated newcos fully owned by Astaldi S.p.A. The first newco includes the activities carried out through joint venture operations with international partners, while the second newco includes the activities performed directly through local branches. The second identified path envisages a new super senior (“pre deducibile”) financing and a capital increase, upon implementation of the composition with creditors proceeding referred to above, to support the business continuity of the Group.
According to the company, all adopted measures with the support of its advisors may be better to best safeguard the company’s assets, also with a view of guaranteeing its creditors, and overcome the current financial stress while continuing to operate its business both in Italy and abroad.
Through the selling of the Third Bosphorus Bridge, Alstaldi estimated to reduce its debt which, last year, had a value of EUR 1.26 billion.