Trasteel and Greensill deal moves Magona sale forward
Greensill Bank and Trasteel have reportedly reached an agreement to sell the Magona rolling mill in Piombino, Tuscany, formerly owned by Liberty Steel.
"A significant new step forward has been taken towards the resumption of Magona operations. We now expect that the process of transferring ownership of Trasteel will be completed as soon as possible so that the plan to resume production can be implemented," says Adolfo Urso, Minister for Enterprises and Made in Italy (MIMT), in a note obtained by Kallanish.
Another meeting will be called within 15 days to finalize the sale of the plant.
However, a source close to the matter believes that the agreement has not yet been finalized in writing, and notes that the trade unions have so far refrained from celebrating.
Trasteel has officially submitted a binding offer to lease a division of the Piombino plant and the subsequent acquisition of the company. It is reported that the company initially offered 45 million euros ($52.3 million) as a rental payment, which was to be deducted from the purchase price, but this met with resistance from creditors. It is assumed that the revised agreement provides for the payment of 36 million euros to Trasteel within eight months from the date of signing.
The collapse of Greensill in March 2021 brought Liberty to the brink of bankruptcy, and since then the firm has struggled to find new sources of financing to continue its operations.
Trasteel was unavailable for comment before the deadline set for the press.
Author: Natalia Kapra
Kallanish.com