CIR - Compagnie Industriali Riunite S.p.A.

01/14/2017 | Press release | Distributed by Public on 01/16/2017 03:21

CIR: on Sorgenia-MPS factual errors and manipulation of the truth

In relation to the various factual errors and the manipulation of the truth over the last few days regarding the Sorgenia-MPS issue, a spokesperson from CIR has issued the following statement: - Neither Mr Carlo De Benedetti, his family nor CIR are insolvent debtors of MPS.

-Sorgenia did not belong to the De Benedetti family but was a joint venture controlled by CIR and Verbund, the main Austrian electricity provider. - Sorgenia never went bankrupt: in 2014, because of the crisis, it needed to restructure its debt and at that time the creditor banks, including MPS, preferred to take over ownership; CIR had previously said it was willing to take part in the recapitalization of Sorgenia whereas Verbund was not prepared to do so. Therefore the contribution proposed by CIR alone was not considered sufficient by the lending banks. After the restructuring agreement, the two shareholders of Sorgenia lost their entire investment in the company. - As is known, for about two years CIR has no longer been a shareholder of Sorgenia: the latter recently announced that it was continuing to pursue 'the process of repaying its debt, following the guidelines set out in its business plan which involves total repayment'. - Lastly, any suggestion of alleged preferential treatment for CIR in the granting of loans to Sorgenia is totally unfounded.