Fondiaria, Premafin Creditors May Convert Debt, Il Sole Reports

Fondiaria-SAI SpA and Premafin Finanziaria SpA (PF)’s bank creditors may convert loans into equity as part of a plan approved last month to merge the companies with Unipol Gruppo Finanziario SpA (UNI), Il Sole 24 Ore said.

Banks, including UniCredit SpA (UCG) and Mediobanca SpA (MB), may swap as much as 200 million euros ($263 million) of Premafin’s total debt of 340 million euros, the newspaper reported without saying how it got the information. Mediobanca may also convert part of the 1 billion euros of loans given to Fondiaria, according to Il Sole.

To contact the reporter on this story: Sonia Sirletti in Milan at ssirletti@bloomberg.net

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