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The debts of Porta Vittoria might go to York

28 November, Milano Finanza

Change of scenario for the future of Porta Vittoria. A few hours from the deadline to submit the offers (today by 1 pm) and with the judicial auction scheduled for tomorrow morning at the Court of Milan (the starting price is 152 million with possible minimal price increases of 7 million), the last-minute news might change the course of this vast is (142 thousand Sq m) in the centre of Milan. The land is owned by Porta Vittoria Spa of the developer Danilo Coppola, assigned to the curators on 29th September as per Court’s order. Banco Bpm, the first creditor of the company with an exposure of 220 million on a total debt of 400 million (the bank appealed to the curators’ decision regarding its credit classification), granted a 60 day exclusive on the debt to the American investment fund York Capital. The bank preferred to not comment. York asked not only to work on the credit of Banco but also on most of the exposure (300 million on 400) of the other creditors of Porta Vittoria, such as Colombo Costruzioni and the real estate company Ipi of the Segre family.

The objective of York Capital once defined the agreement with the creditors and, more importantly, with Banco Bpm, is to request to the judges of the Court of Milan to be admitted to the procedure of arrangement with creditors.

This option has been made possible because most of the potential buyers are worried about the issues related to the development of the area. In the past few weeks, the names of Coima, Davide Bizzi, and the funds Varde, Apollo and King Street have been circulating, along with the Italian Kryalos. All these potential buyers have evaluated the dossier in order to make their formal proposal. The main obstacle consists in the legal action started last July by the liquidator of the company owner of a building near the area (allegedly the former nightclub Plastic) with the request to tear down two storeys of the future residential building.

While trying to figure whether the auction will go desert, as it looks like, there is now another possibility for Porta Vittoria. Obviously, the entry of York will be only the first step. Then it will be necessary to find a developer for the whole area. At least in this way, it will be possible to give a future to the project and to repay the creditors.

Source: Milano Finanza

Translator: Cristina Ambrosi