Mariella Burani Fashion Group swings to H1 net loss

MILAN Aug 30 (Reuters) - Italy's Mariella Burani Fashion Group MBFG.MI swung to a net loss in the first half as revenues fell and it undertook a restructuring programme.

The fashion group said the first-half financial report which showed a group net loss of 142.1 million euros ($204 million) versus a net income of 4 million euros last year, included significant asset writedowns and accruals.

It will reconvene a board meeting "in order to elaborate a proposal to replenish the loss as a means of replenishing and reconstituting the company's capital", it said in a statement.

"The major shareholder has expressed willingness to subscribe this capital increase together with the assistance from long-term strategic and/or financial partners."

Mariella Burani, which makes ready-to-wear womenswear and leather goods, said this month it was calling a shareholder meeting to approve a mandate for the board to make a capital increase of up to 100 million euros in the next five years.

For the first-half, it said revenues fell to 246.1 million euros compared to 325.4 million euros last year. Net debt was 478.4 million euros at end-June versus 401.5 million euros million euros at the end of December.

It said the increase reflected the reclassification of financial assets for 30 million euros since December.

In May, Mariella Burani requested its primary lending banks a standstill of debt repayments until Oct. 31 as part of its restructuring programme.

Unit Antichi Pellettieri (AP.MI) said late on Saturday it had swung to a net loss of 29 million euros versus a net income of 6.4 million euros last year. Prior to impairment charges, the net loss was 13.2 million euros. [ID:nBIA293a7] ($1=.6964 Euro)