Italian Tile Maker Pitches Debt Haircut as Performance Slows

(Bloomberg)-An Italian ceramic tenant manufacturer of the family, after suggesting a debt restructuring for creditors initially avoiding a haircut, he wants the bank lenders to accept a vertical writing after a further decline in performance.

Panaragroup Industrie Ceramiche SPA suggests that unsecured lenders write more than half of their assets in exchange for stock -like instruments, and asked the people not to be identified because the talks are special. Earlier this year, debt negotiations suggested a change and re -planned debt without writing the company.

Considering the underlying business performance, people would be difficult to achieve, and the plan should change as the activity fell worse. The proposal also foresees the company to receive cash in the form of income from asset sales. The company immediately did not respond to the request for comments.

Panaragroup specializes in the production of porcelain and laminated stone goods. According to the website, it employs more than 1,805 people and operates eight production facilities in Italy, Portugal, Germany and the United States. According to their latest annual results, it generated € 401 million ($ 471 million) in 2023.

At the end of 2023, the company had € 243 million financial debt. Among this, only one € 50 million from the European Investment Bank came with credit contracts. In 2023, the Panaragroup had asked and received a waiver because the volumes had already decreased from these agreements.

Panaragroup is faced with a request for slowing down for floor and wall tiles. In 2023, the net income decreased by 21% compared to the previous year.

Among the founders of the group, the Mussini family continues to be the majority shareholder.

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