Italy's Lucchini Steelmaker Sells Unit To Czech DT
Lucchini group has sold its key foundry, Bari Fonderie Meridionali (BFM), to the Czech DT - Vyhybkarna a Strojirna AS, as part of Lucchini's debt restructuring plan, the Italian steelmaker said on Tuesday, Reuters reported. Lucchini, owned by Russia's Severstal and Severstal's owner Alexei Mordashov, reached a deal with shareholders and creditor banks in December, to restructure Lucchini's 720 million euro ($960.41 million) debt pile. The debt agreement is widely seen as paving the way for a potential sale of the debt-burdened Italian steelmaker to a third party. With the debt restructuring now underway, Lucchini has started repaying its creditor banks and shareholders who have signed the debt deal, as well as suppliers it had owed money, the company said in a statement. Lucchini declined to reveal financial details of the sale, saying only that BFM makes about 15 million euros in annual sales and employs about 100 people. Based in the city of Bari, BFM is the largest foundry in southern Italy and the most important producer in Italy of permanent railway superstructures materials, particularly crossings in cast manganese steel. Read more.