Italy's Aedes says auditors "noted" recovery effort

MILAN, Aug 13 (Reuters) - Italian property company Aedes (AEDI.MI) said its auditors Ernst & Young had noted the actions it was taking to improve its finances, after a newspaper report said they raised doubts about its business continuity.

"While highlighting the delicate moment that the Aedes Group is going through in terms of finances ... (Ernst & Young) took note of the actions which the board has agreed" to turn the company around, Aedes said in a statement on Wednesday.

Corriere della Sera newspaper said in a report on Tuesday that Ernst & Young had raised doubts about the company's business continuity.

Aedes, which last week admitted a "rocky financial position," is working on an agreement with creditor banks after it missed due dates for repayments of about 40 million euros of debt.

It is working on asset sales and plans to raise between 150-200 million euros in capital to bulk up its finances.

It confirmed on Wednesday these plans were going ahead.

Aedes is suffering as Italy's property market feels the effects of a global slump in real estate stemming from a crisis in U.S. subprime lending which started a year ago.

(Reporting by Jo Winterbottom; editing by Rory Channing)