Oct 14, 2009
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IT Holding awaits bank approval for credit request

Oct 14, 2009

MILAN, Oct 14 (Reuters) - The Ittierre unit of Italian fashion group IT Holding (ITH.MI), in administration since February, has asked banks for further credit but has not yet received approval, the company said on Wednesday 14 October.

Just Cavalli 2009

Italian business daily Il Sole 24 Ore reported that IT Holding, currently in the hands of government-appointed commissioners, was talking to creditor banks to get 30 million euros ($44.7 million) in financing.

Citing speculation, it said four banks had granted the request. Another was close to agreeing while there were difficulties with the sixth, it said.

IT Holding is made up of production unit Ittierre -- which makes and distribute clothes for lines such as Just Cavalli and Galliano -- and fashion brands Gianfranco Ferre and Malo.

"With reference to what was reported in today's press about newly requested credit lines, the Ittierre Group clarifies that it has not received any communication regarding the official approvals from the bank committees that are evaluating the request," the company said in a statement.

It did not give further details.

Ittierre was placed in administration in February but obtained a 30 million euro credit line from five Italian banks later the same month.

The rest of IT Holding was put into administration a day later and three commissioners were put in charge who are now drawing up a plan for the group.

The commissioners have called for bids for the whole group or parts of it.

Shares in the company are suspended.

($1=.6710 Euro)

(editing by John Stonestreet)

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