Italian coated paper producer Burgo advised by creditor banks to convert some €350M-€400M of its €1B debt into financial instruments; company and its main creditors to meet again in coming weeks, aim to reach solution by end of July
June 19, 2014
– Creditor banks have suggested that Italian coated paper producer Burgo Group convert some EUR 350 million-400 million (USD 477m-545m) of its EUR-1-billion debt into financial instruments, business daily MF-Milano Finanza reported on Thursday, without citing sources.
According to the newspaper, Burgo and its main creditors, Mediobanca (BIT:MB), Intesa Sanpaolo (BIT:ISP) and UniCredit (BIT:UCG), gathered on Wednesday in a first meeting to discuss the paper maker's hefty debt and the initial proposal was to convert some of the debt into financial instruments yet to be defined.
Mediobanca, which holds 22% in Burgo, is exposed with more than EUR 500 million.
The parties will meet again in the coming weeks with the purpose to reach a solution by the end of July, MF said.
(EUR 1 = USD 1.363)
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