(Alliance News) - Italia Independent Group Spa announced Tuesday that, following the achievement of agreements with 99 percent of its creditors, the board of directors resolved to file an appeal for approval of restructuring agreements under the Business Crisis and Insolvency Code.

In addition, following the achievement of agreements with 91 percent of its creditors under the negotiated crisis settlement procedure opened in June 2022, the sole director of the wholly owned subsidiary Italia Independent Spa made the determination to file the appeal for approval of the restructuring agreements of the Code of Corporate Crisis and Insolvency.

The decisions made on Tuesday are part of the reorganization path of the two companies launched on June 15, 2022 and already disclosed to the market.

It should be recalled that the drafting and execution of the final reorganization plans of the two companies underlying the respective restructuring agreements are made possible thanks to the contribution of external finance by IIG's majority shareholder Lapo Elkann, who has made specific financing commitments to the companies.

The final restructuring plans provide for the payment of the debts subject to restructuring: as far as IIG is concerned, to the extent of 10% of the debt as of last June 30 and, in full, as regards debts arising after that date in accordance with business continuity; as far as Italia Independent is concerned, to the extent of 20% of the debt and, in full, as regards debts arising in accordance with business continuity and business model restructuring measures.

In addition, Italia Independent's final plan provides for the recognition in favor of Italia Independent's creditors of a specific earn-out, consisting of the right to receive any net proceeds arising from the sale of Italia Independent's business or equity investment in Italia Independent or otherwise from the enhancement of Italia Independent's assets, in ways and technical forms to be identified. The company earn-out, if any, will be earmarked and finally released in favor of the discharged creditors by June 30, 2027.

Again, the plan provides for another earn-out, consisting of the right to receive any funds that are released from a specific definitive fund in Italia Independent's plan "Contingency Fund." The contingency earn-out, if any, will be earmarked and permanently released in favor of the discharged creditors by December 31, 2023.

Following the execution of the final reorganization plans, therefore, the payment commitments arising from the earn-outs will remain with the companies and will also apply to IIG if Italia Independent's "debtor assets" are sold or "enhanced" in any form; post-execution of the commitments deriving from the earn-outs, there will remain the commitments to IIG's reference shareholder, Lapo Elkann, to repay the loans provided to both companies - amounting to a maximum of approximately EUR12.8 million - in order to meet the definitive recovery plans; these are loans subordinated to any corporate debt of the companies, including future ones, but not to the repayment of other shareholder loans or share capital; in addition, IIG shareholders will be asked to decide whether to carry out capital transactions for the continuation of the business at a special meeting to be convened by the board of directors after the desired approval of the companies' restructuring agreements.

IIG's stock is flat at EUR0.29 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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