Acciaierie d’Italia to receive additional €120 million to cover debts

The board of directors of Sace Financial and Insurance Group, which is controlled by the Italian Ministry of Economy, has decided to provide a financial guarantee to cover 80% of the operation to repay steelmaker Acciaierie d’Italia’s receivables to strategic suppliers. The amount of €120 million has been allocated for this purpose, Liguria Biz Journal reports.

According to sources, this will help maintain the company’s production continuity and protect employees and suppliers.

The funds are to be added to another €100 million credit line that Sace has opened over the past few weeks to cover ADI’s debts to customers.

As a reminder, the Italian government is working to expedite a €320 million bridge loan, which is subject to approval by the European Commission, for Acciaierie d’Italia (ADI). ADI will also receive €150 million for repairs at its Taranto steel mill. These funds will allow the company to continue production and start maintenance of blast furnaces No. 1 and No. 2. It will take six to seven months to restore the units to operation, and a new industrial plan is expected to be presented within a month.

As GMK Center previously reported, five multinational companies are interested in Acciaierie d’Italia, Italian Minister of Enterprise and Production Adolfo Urso said during a meeting with trade unions in early March. According to him, three of them have well-structured projects.