According to a report by Italian financial newspaper Il Sole 24 Ore, the Court of Milan has not yet approved the debt restructuring plan of Italian steelmaker Lucchini Group and so day by day it appears more likely that the steel producer will be assigned to compulsory administration. The Court of Milan is expected to reveal its decision on the debt restructuring plan in the coming days.
Lucchini is estimated to be currently losing about €15 million every month, while its chief restructuring officer Pierre Varnier has said that the group can maintain its financial autonomy for around another six to nine months. The most difficult situation is faced by Lucchini's Piombino, Livorno-based integrated steel mill and by its 2,200 employees, as the mill still has to pay about €130 million to satellite industries.
Meanwhile, the restructuring plan on which the Court of Milan will make its decision is based on Q3 2011 figures, while Lucchini's current production capacity utilization rates are at around 60 percent.