MILAN (MF-Dow Jones)--Italian prosecutors Monday rejected a plan
to restructure beleaguered Italian real estate firm Risanamento SpA
(RN.MI), paving the way for a Milan judge Tuesday to announce a
hearing on the case in early October, a judicial source said
Monday.
A Risanamento spokeswoman wasn't immediately reachable for a
comment.
Risanamento, a Milan-based real estate developer company, is
facing bankruptcy after two Milan-based prosecutors in July filed
an insolvency request due to the company being EUR2.8 billion in
debt.
Risanamento's creditor banks, which include Italy's two largest
lenders, Intesa Sanpaolo SpA (ISP.MI) and UniCredit SpA (UCG.MI),
have already pledged to support a capital increase worth up to
EUR135 million and have said they would also back-up a bond of
around EUR270 million.
Separately, Intesa Sanpaolo's chief executive, Corrado Passera,
Monday said he yet had to be informed of the rejection and
reiterated the soundness of the restructuring plan.
Shares of Risanamento tumbled in Milan Monday, as investors
believe the company is going to be declared insolvent. At 1415 GMT
share were down 10% at EUR0.50.
-By Alessandro Mocenni, Rosario Murgida and Sabrina Cohen, Dow
Jones Newswires, +39 02 5821 9906; sabrina.cohen@dowjones.com