Finmeccanica has won backing for its recapitalisation plan following the year-end meeting with its majority owner, Italy's giant state-holding company IRI.
The defence/aerospace group has been angling for "up to" L2,000 billion ($1.2 billion) to shore up its ailing finances. The move was finally approved in December by IRI, which has the majority 63.4% of Finmeccanica, and a group of banks which own another 23%. The remainder is held by private investors.
The cash is urgently needed to cover debts of more than L8,000 billion and predicted record losses for 1997 of more than L2,000 billion, including restructuring costs. The group expects a minor loss of around L127 billion in 1998.
Source: Flight International
