MILAN — The money isn’t in the bank yet, but Fin.part appears to be a step closer to recovering from its financial turmoil.
This story first appeared in the November 20, 2003 issue of WWD. Subscribe Today.
A source close to the firm said Wednesday that Fin.part expects its current shareholders and an unspecified group of banks to subscribe to an upcoming capital increase for about $59.5 million (50 million euros) in the first part of next year. Those funds would come on top of an already planned $83.3 million (70 million euros) capital gain for the firm.
Dollar figures have been converted from euros at current exchange rates.
Fin.part still has a large bill ahead next year, when it must repay $237.9 million (200 million euros) in bonds.
Auditors at KPMG have declined to approve Fin.part’s 2002 and first-half 2003 accounts, spurring a financial crisis at the company that resulted in the resignation of founder Gianluigi Facchini as chairman. But he is still the company’s largest shareholder with a 19.5 percent stake and he retains his title of ceo.
KPMG has said it lacks evidence that Fin.part has the funds needed to recapitalize. Officials at the auditing firm could not be reached for comment Wednesday.
Silvano Storer, who shared the ceo title with Facchini, resigned this month. Fin.part, which owns Cerruti and Frette, had net financial debt of $433.9 million (364.8 million euros) as of Sept. 30.