Stefanel stays afloat after striking deal with two investors
After months of talks, Stefanel has brokered a deal which will stave off bankruptcy. The Italian fashion group has issued a press release reporting it has signed "a framework agreement for the restructuring of the company's debt, the strengthening of its assets and its relaunch," with Oxy Capital Italia and Attestor, two investment funds specialised in salvaging struggling companies.
The womenswear label pointed out that the deal was approved by the creditor banks. Between now and 31st July, Trinity Investment Limited, a fund managed by Attestor, will make available the sum of €10 million as emergency liquidity, to ensure Stefanel's short-term survival. The agreement also provides for fresh funding to bolster the fashion group's industrial relaunch plan, to the tune of €25 million, to be put up by investors and some banks.
Also, the banks will transfer the group's loans to another company, controlled by Oxy Capital Italia and Attestor.
Stefanel has been struggling in the last few years, and notched up losses for €14.18 million in the first 11 months of 2016. In early November it eventually decided to file with the court to make arrangements with its creditors, setting up a protection procedure allowing Stefanel to stay in business, while negotiating with creditors and potential investors.
The new agreement was very well received by the stock market, and on Friday 24th March Stefanel shares traded strongly in Milan.
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