IT Holding receives interest from potential investors, needs to use credit facilities

By Caroline Salls

Pittsburgh, Feb. 2 - IT Holding SpA has received indications of interest from various potential investors, one of which would allow the group to rebalance its financial situation through an increase in share capital and the renegotiation of the company's debt, according to a news release.

The company's board of directors will examine the potential transaction at its next meeting, scheduled for Feb. 3.

IT said negotiations have also continued with Mensun, but those talks were no longer being held on an exclusive basis.

In addition, the company said it has confirmed in the last week that it will need to use its formally available credit facilities in full in the very short term to allow the group to alleviate a situation that has arisen with its suppliers and continue its regular activity with the spring/summer 2009 and fall/winter 2009/2010 delivery dates drawing near.

The company said this need to access the credit facilities is crucial to its potential debt restructuring.

As previously reported, IT has made two requests to postpone an installment due in October on its medium-term bank loan in light of the company's cash management difficulties.

IT said these difficulties have resulted from the non-renewal of a securitization of trade receivables program terminated at the end of the summer and the progressive difficulty in making full use of the formally available credit facilities.

In addition, the company said a delay in royalty payments has also created tension with its licensors, which have given notice of payment in arrears.

The group said discussions are underway aimed at finding a solution to the licensor issues.

IT Holding is a Milan, Italy-based holding company for fashion brands, including Versace, Dolce & Gabbana and Roberto Cavalli.

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