Italy has decided to initiate a special administration process to secure the future of Acciaierie d’Italia (ADI). According to a union statement dated January 18th last week, the company aimed to find a solution to its financial difficulties.
ADI started the process by applying to the Milan Chamber of Commerce on January 15th for a negotiated agreement. Following this step, the state investment agency Invitalia sent a report to verify the necessary conditions to initiate the special administration process for Acciaierie d’Italia. At the same time, it was reported that ArcelorMittal, holding a 62% stake, applied to the Milan court for an agreement that unions considered an extension step.
If the special administration process is initiated, officials have indicated that the current operations will be guaranteed with a loan of 320 million euros under market conditions. It was noted that this process would be temporary and would last for two weeks after the enforcement of the relevant directive accepted on January 16th.
While the state investment agency Invitalia holds a 38% stake, it is known that ArcelorMittal owns a 62% stake. Among the challenges faced by Acciaierie d’Italia is the halt of gas supplies due to increasing debts. The Italian court reportedly granted energy companies the authority to cut off gas supply to ADI. However, the company managed to suspend the decision by appealing to the State Council, the Supreme Court. It was mentioned that any decision regarding gas supply would be made after discussions between the regulatory body Arera and Snam, the emergency supplier of the former Ilva.
Italy taking Acciaierie d’Italia under special administration signifies a proactive approach to the company's financial difficulties. With the government's commitment to securing operations and involving private partners, this move stands out as a strategic effort for the long-term activities of ADI.
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