13 January, Il Sole 24 Ore
A surprising development for the Porta Vittoria area in Milan collapsed under the weight of a 400-million-euro debt.
The American fund York Capital is now definitely the favoured among the competitors in the match over the area formerly owned by Danilo Coppola. After a negotiation lasted several weeks, York Capital has taken over the credits of the main non-bank creditor of the project, namely the company Colombo Costruzioni, that built the infrastructures and the buildings of the area.
The broker Blue Factor has reached an agreement with Colombo Costruzioni for the purchase of its credits. We must note that the majority of the necessary funding was obtained from a securitisation company whose notes will be underwritten by the investment funds managed by York Capital Management. This is an important step forward since York Capital has already signed a preliminary agreement (expiring in February) with the main creditor for the area, Banco Bpm, claiming a credit of over 200 million. At this stage, we must wait for the answer from the fund Algebris who, through the Nike Real Estate, the company managed by the fund Algebris II, deposited last week a bankruptcy settlement concerning the company Porta Vittoria Spa. The proposal was made in order to allow the full payment of the preferential creditors, together with the repayment of big quotas to the other creditors. In any case, the matter is very complex since there are still some issues to clarify regarding the past role of Banco Bpm in the area. The bank, in fact, is currently under investigation for its alleged managing and coordinating activity for Porta Vittoria Spa, now bankrupted. On the other hand, Porta Vittoria Spa may come up with a proposal capable of satisfying the creditors. Certainly, York Capital, by purchasing the credits from Colombo Costruzioni will have a decisive role in terms of voting power in the assembly of creditors.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi