Nov 8, 2009
Mariella says banks should decide by Nov 16
Nov 8, 2009
MILAN, Nov 9 (Reuters) - Creditor banks of debt-laden Mariella Burani Fashion Group (MBFG.MI) have to decide whether to approve a debt restructuring plan by Nov. 16, the luxury good maker's chief executive said in a newspaper interview.
Mariella Burani 2009
If they clear the restructuring, a final accord could be signed around Dec. 10, paving the way for a 100 million-euro ($149 million) capital hike to bail out the group, Gabriele Fontanesi told Il Sole 24 Ore on Sunday 8 November.
"Only if the decision is positive could we delay the shareholder meeting by 30 days and have time to reach a final agreement with creditors," he was quoted as saying.
Mariella Burani, whose shares have been indefinitely suspended from trading, had net debt of 479.9 million euros at the end of September.
Fontanesi said the board will look for a white knight if banks reject the plan and the Burani family which controls 71 percent of the group rejects the recapitalisation.
"There are several expressions of interest from companies and funds but nothing more at the moment," he told the newspaper.
Last week, the company said it has had contacts with South Korean group E.Land and other potential investors though no proposal had yet been made.
In a statement in October Mariella Burani said it may consider insolvency proceedings if the propose deal with banks and the recapitalisation fail. ($1=.6722 euros) (Reporting by Danilo Masoni; Editing by Greg Mahlich)
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