UniCredit to Advise Italian Steelmaker Ilva on Revamp Plan
UniCredit SpA (UCG), Italy’s biggest bank, agreed to advise Ilva SpA, the country’s steelmaker involved in an environmental probe, on a new business plan the government-appointed commissioner is working on.
“We have been asked to contribute in terms of advice on the plan,” Chief Executive Officer Federico Ghizzoni told reporters in Milan yesterday. “So far we haven’t been asked to give a financial contribution to the plan, but just an evaluation on how much debt and equity is necessary to finance it.”
The Italian government put Ilva under special administration last year after a widening environmental probe put Europe’s largest steel plant at risk. The commissioner, Enrico Bondi, appointed by Prime Minister Enrico Letta in June, is studying a 3 billion-euro ($4.06 billion) revamp plan, to be financed by loans for 2.3 billion euros and by a capital increase for 700 million euros, Il Sole 24 Ore reported yesterday.
Intesa Sanpaolo SpA (ISP) and UniCredit are among creditors of the company. Ilva has about 2 billion euro in debts with the banks, according to newspaper MF. A spokesman for Ilva declined to comment.
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