MILAN (Reuters) - Pillarstone has taken over Manucor after restructuring the Italian packaging firm’s debt, the debt managing platform set up by U.S. investment firm KKR said on Thursday.
Pillarstone bought Manucor’s long-term loans from Intesa Sanpaolo (ISP.MI) in 2015 as Italian banks sought to push soured debt off their balance sheets following a deep recession.
Pillarstone took over the debt as part of a larger portfolio of loans granted to five companies by Italy’s top two banks, Intesa Sanpaolo and UniCredit.
It converted 10.2 million euros of Manucor’s debt into equity giving the company the option of converting another 5 million. It rescheduled the remaining 25 million euros to 2022.
It has now become the sole owner of Manucor, which makes polypropylene film for packaging and labels and has 140 million euros in annual sales.
“Manucor can now focus on growing its business again,” Pillarstone said in a statement, adding 15 million euros would be invested under a five-year plan to boost production capacity and improve its sales mix.
In the past few years Italian banks have shed some 75 billion euros in problematic loans, paving the way for restructuring experts to seek to turn around over-indebted companies.
Deloitte and RCC advised Pillarstone.
Reporting by Valentina Za; editing by Jason Neely