December 1, 2008
The closing of the sale of Alitalia’s best assets has been delayed because the CAI investors’ consortium is unable to raise and deliver the funds before December 12, a source close to the matter said.
Augusto Fantozzi, the administrator overseeing the Italian airline’s bankruptcy, said in a statement that CAI would pay for the EUR427 million euro (USD$541 million) purchase starting December 12, when the airline’s assets would be transferred to it.
The deal was to have closed on November 30. Fantozzi earlier told state radio technical reasons caused the delay.
CAI’s investors have already approved raising up to EUR1.1 billion to fund the purchase of Alitalia, but will be able to hand over the money only on December 12, the source said.
CAI has agreed to pay EUR427 million in cash and take on debt worth EUR625 million under the government-backed deal.
However, CAI will be responsible for Alitalia’s expenses starting December 1 and will assume any risks related to its operations from December 12 onwards even if the transfer of assets is delayed, Fantozzi said in the statement.
The green light from a European monitor trustee — one of two remaining regulatory approvals needed — has already been informally given and a formal approval is expected later, the source said.
Alitalia’s sale to CAI comes after a difficult two year hunt for a buyer that included a failed auction and a subsequent deal to sell it to Air France-KLM which collapsed.
The French airline and German rival Lufthansa are now in the running to buy a 20 percent stake in Alitalia after it is in CAI’s hands.
(Reuters)
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