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Giacomelli Facing Financial Troubles

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RIMINI, Italy (May 20) – Giacomelli Sports Group, listed among the STAR section of the Italian stock exchange, is in serious financial trouble. The board, acknowledging the situation, proposes a thorough financial restructuring. The financial troubles find their cause in the purchase of Longoni Sports in July 2002, the opening of no less than 45 […]

RIMINI, Italy (May 20) – Giacomelli Sports Group, listed among the STAR section of the Italian stock exchange, is in serious financial trouble. The board, acknowledging the situation, proposes a thorough financial restructuring.
The financial troubles find their cause in the purchase of Longoni Sports in July 2002, the opening of no less than 45 new outlets (now totaling 171) in 2002, the gradual reduction of creditworthiness plus the failure to acquire new bank funding.
Symptoms of the troubles are the fact that suppliers have been waiting a long time for the payment of their bills. Some have started legal action to obtain their money. Reportedly, employees have been paid late too. Caretti & Associati, the outside advisers who have taken on the restructuring, will try to reschedule payments and loan repayments, and they will dispose of all non-core business. Some real estate has already been sold to investors with a lease-back construction.
The net debt at the end of quarter 1 2003 was €196.734, supplier payables amounted to €222,322, inventories were €231,389. Assets, totaling €211,106 were €14,465 lower than on December 2002, due to the sales of real estate.
The family holding company has decided to increase equity with €50.37 million, issuing new shares and warrants preferently to existing shareholders.
The actual number of outstanding shares is 54.75 million, at a nominal value (20 May) of 23 cent. After the Giacomelli family, San Paolo IMI bank is the second-largest shareholder (3% of the shares). Emanuele Giacomelli and his wife Gabriella Spada (President) together own 53.2% of the holding. Last month, Emanuele retired as vice-chairman (but stays on the board). Directors Controlling Bastianini and Mazzola and Financial director Di Castri retired. CEO Stefano Pozzobon will take over the duties of chief financial officer. Mario Spada has joined the board.(OB)

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