Italian apparel company Stefanel SpA is ready for a new chapter. According to a note released on March 24, the company, which has faced financial troubles over the last few years, inked a rescue deal with the British fund Attestor Capital LLP and the management company of private equity funds Oxy Capital Italia Srl. The agreement aims to restructure the debt, consolidate the patrimony and relaunch the company.
As of Jan. 30, Stefanel registered a net debt of 85.4 million euros, or $92.2 million, as a result of more than 93 million euros, or $100.4 million, of debt owed to six banks and 8.2 million euros, or $8.9 million, cash.
According to the agreement, Attestor’s investment fund Trinity Investment Limited will provide 10 million euros, or $10.8 million, by July 31 to back Stefanel’s most urgent financial payments and ensure the continuity of the company.
In exchange, a representative of the investors will get a seat on the firm’s board and McKinsey & Co. consulting will be named adviser to the turnaround operation. In addition, Stefanel SpA pledged 100 percent of its controlled company Interfashion SpA and the respective apparel label “High,” designed by Claire Campbell.
In addition, a sum of 25 million euros, or $27 million, will be conveyed to reimburse Trinity’s initial investment and back the implementation of the industrial plan. This amount will be supplied by the investors, the banks and the company’s president and chief executive officer Giuseppe Stefanel, providing 10 million euros, 12.5 million euros and between 1.25 million and 2.5 million euros, or $10.8 million, $13.5 million and $1.35 million to $2.7 million, respectively.
Creditor banks will give up part of their credits to a newco of Attestor and Oxy, for a total sum of 25 million euros, or $27 million, a part of which will be converted to newly issued shares. The remaining 67 million euros, or $72.4 million, of Stefanel’s debt is expected to be reimbursed by the end of 2022.
Shares of Stefanel, which is listed on the Milan Stock Exchange, climbed 47.4 percent following the announcement on Friday.