January 9, 2019 / 11:01 AM / a month ago

UPDATE 1-Italy's Astaldi gets approval for 75 mln euro bridge loan

(Recasts with official statement)

ROME/MILAN, Jan 9 (Reuters) - Astaldi has received court approval to take out a bridge loan worth 75 million euros ($86 million), the Italian builder said on Wednesday, confirming what a source told Reuters earlier.

The Rome-based builder filed for court protection from creditors in September after being hit by delays to plans to sell a bridge in Turkey.

The loan will be provided by alternative lender Fortress. Astaldi had asked for court permission to take out the loan in December.

“This loan is functional to the pursuit of the business continuity objective up to the deadline for filing the final proposal of composition with creditors,” Astaldi said in a statement.

The loan carries an interest rate of around 16 percent, a source familiar with the matter said.

The loan could be increased by a further 125 million euros if required, although the builder has not yet made a request to the court, the source said.

Astaldi shares were up 9 percent at 1030 GMT.

Italian construction group Salini Impregilo and Japan’s IHI Corporation have made non-binding bids for Astaldi.

The source said binding bids were expected by the end of January.

$1 = 0.8724 euros Reporting by Domenico Lusi and Stephen Jewkes; editing by Jason Neely

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