This is why the financial issue becomes complicated
The situation of ex Ilva, the Taranto steelworks now under extraordinary administration, presents a significant financial challenge to ensure its operation and prepare it for a future sale. From sources close to the dossier, reported by The printit emerges that an investment of one billion euros by the end of the year to keep the plants under management, but the commissioner structure expects to be able to invest only half of this amount. This sum deemed insufficient represents an obstacle in preparing the company for the market, with the government aiming to find a buyer in the next six months.
The need for financing
To continue the operations of the former Ilva and meet the most immediate commitments, the commissioners highlighted the need to obtain a sum of one billion euros. However, it is currently only expected to be spent 500 millionwith the aim of maintaining acceptable production and bringing the company to a minimum level in view of the sale.
Financial obstacles and strategies
The financial issue becomes further complicated since the 500 million tranche needed does not include the bridge loan 320 million arranged by the government, the materialization of which remains uncertain due to the necessary approvals from the European Commission regarding state aid. According to the Minister of Business Adolfo Urso, the negotiations with the Commission are progressing well, even if a note of pessimism persists regarding the actual disbursement of the loan.
A huge debt
The debt issue adds another layer of complexity. Currently creditors require that debts of approximately 1.5 billion euros, a figure that does not include the 680 million owed to the Invitalia holding company for capital financing. This debt scenario is intertwined with the responsibilities shared between the commissioner structure, the government, the Court and ArcelorMittal, the Anglo-Indian giant that acquired Ilva in 2018.
Towards the sale
Despite the challenges, the immediate goal remains to sell Ilva within the year. Recent visits by three potential investors – Metinvest from Ukraine, Vulcan Steel and Steel Mont from India – indicate a concrete interest in acquiring the steelworks. The Italian government aspires to sell Ilva as a single block, rejecting the idea of breaking up the company and underlining the complementary importance of the factories in Genoa and Novi Ligure compared to that of Taranto.
Overall, the challenge of restoring full functionality and making the former Ilva salable appears complex and multifaceted, involving issues of financingdebt and European regulatory compliance, while the time to find sustainable solutions continues to tick.
The clarification – In reference to the article “Ex Ilva – Missing a billion” reported this morning by some press outlets, Acciaierie d’Italia in extraordinary administration would like to point out that the damage found in the plants amounts to one billion euros and will be repaired within per year, spending an amount of approximately 400 million which will be covered with the financial sources already foreseen by the procedure.
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