Italy Says Alitalia Investors Can Soon Collect Bonds for Bankruptcy Swap
Alitalia SpA investors will soon be able to collect Italian government bonds they were offered in exchange for their securities after the airline was declared insolvent in 2008.
The Finance Ministry said in an e-mailed statement that its decree permitting the swap had been published in the government’s official gazette, allowing for the bonds with a nominal value of 312.9 million euros ($418 million) to be transferred to the Bank of Italy for disbursement.
Under the initial terms of the plan, bondholders were due to recoup 71 percent of their securities’ nominal value. Shareholders will be allowed to swap their stock for the bonds at a value of about 27 cents a share.
Alitalia was put into bankruptcy administration on Aug. 29, 2008 and broken up in early 2009. The passenger-flight business is now owned by a group of Italian investors and Air France-KLM Group, while the rest of the company is operating under protection from creditors.
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