The financial restructuring of Brescia, Italy-based steelmaker Lucchini Group, which is owned by Russian tycoon Alexei Mordashov, is at risk, as reported by Italian newspaper Il Messaggero.
According to the report, two British hedge funds have bought about €23 million of loans which had been provided to Lucchini by France-based Societe Generale and it is reported that they are ready to interfere in the restructuring plan.
A couple of days ago, during a meeting of Lucchini's creditors, the hedge funds' representatives displayed aversion to the €770 million debt restructuring plan, which requires the approval of 60 percent of creditors. Reportedly, the hedge funds have refused to participate in the €50 million bridge-loan paid in order to ensure the group has the necessary working capital to complete the sale of four Swiss hydropower plants owned by Ascometal, the French subsidiary of Lucchini Group.