Italy Said to Seek Help Reorganizing Firms Owing $11 Billion

Published in

The Italian state entity that took on soured debt from two failed Venetian banks is seeking partners to help restructure companies struggling to repay 9 billion euros ($11 billion) of loans, according to people with knowledge of the matter. The collapse of Banca Popolare di Vicenza and Veneto Banca left tens of thousands of small businesses in the northern Veneto region without access to financing, Bloomberg News reported. They owe billions of euros in loans classed as unlikely to pay that were taken on by state-owned SGA SpA after the lenders imploded last year. Unlikely-to-pay debt, or UTP, refers to loans to borrowers that are still solvent but unlikely to meet their obligations in full. SGA is seeking private-equity investors to help restructure, finance, and manage companies that owe UTP debt, the people said, asking not to be identified because the plan is private. Bain Capital Credit, DeA Capital, and Pillarstone Capital are among firms that showed preliminary interest, they said. Read more.