Brescia, Italy-based steel producer Lucchini and creditor financial institutions have resumed talks that had been closed in mid-July. The agreement signed in July, which provided new liquidity of €126 million (a bridge loan of €78 million and letters of credit for €48 million), never became operational and the Italian group recently resumed the operations at its blast furnace in Piombino in northern Italy, relying solely on its own financial resources.
The decision to reopen the negotiations between the banks and the steel group was taken following the halt by the French government of the sale by Lucchini of four power plants belonging to Ascometal to the Swiss company BKW. Ascometal is going to be sold (at a price of €300 million) to the American investment firm Apollo: the agreement has already received antitrust clearance from the EU, but issues relating to the separate sale of the hydroelectric plants to Switzerland must first be clarified.
Meanwhile, at the Piombino plant, there are concerns about the lack of liquidity. Self-financing will not last long and it is likely to create difficulties for the 150 satellite industries of Lucchini, that are already forced to collect their bills at a delay of six months.