Italy's Finance Ministry stated Alitalia investors will soon be able to collect Italian government bonds that were offered by the Italian Government in exchange for their securities after the airline was declared insolvent in 2008 (Bloomberg, 07-Dec-2010). The Ministry stated that its decree permitting the swap had been published in the government’s official gazette, allowing for the bonds with a nominal value of EUR312.9 million to be transferred to the Bank of Italy for disbursement. Under the initial terms of the plan, bondholders were due to recoup 71% of their securities’ nominal value. Shareholders will be allowed to swap their stock for the bonds at a value of around EUR 0.27 cents/share.
8-Dec-2010 12:06 PM