Lucchini shapes up to reduce debts

Italian steel group Lucchini SpA is embarking on a three-point restructuring plan, which will focus on paying off corporate bond issues of 700 million euros by 2006, company officials told MB.

This summer Lucchini sold its Lusid steel business unit to the Bonsato group, which owns Acciaierie Venete in Padova, for 100 million euros. Lusid included the Sarezzo steelmaking plant and two mini-mills at Mura and DolcÉ.

Problems for Lucchini started when it sought to refinance its corporate bond issues. A default by a major Italian food company on a 1.2 billion-euro corporate bond in late 2002 made it difficult for non-listed companies to use this method of raising finance. A company spokesman also pointed out that the company has no ratings. “We don’t have the time for a rating,” he said.

Repayment of a 300 million-euro corporate bond, which was spent...


November 27, 2003

18:08 GMT