Cerved withdraws Micoperi's rating
According to financial analysts, after shareholders rejected the new restructuring plan, the company might reach the brink of default
After the unsuccessful meeting with shareholders, Cerved Agency, withdrew the rating given Micoperi's 35 million Euro bond, subscribed by Ravenna-based company in spring 2015.
As stated by Cerved, decision was made “due to the default of previously rated company”.
In this particular instance the default results from the unpaid second part of the loan (10%, namely 3.5 million Euro) which Micoperi had to settle few days after the meeting (deliberately convened to ask for an amendment to some regulations), although still according to the same statement, Micoperi regularly paid the due coupon.
In late September, when the Agency confirmed C1.2 rating (high credit risk), after having downgraded Micoperi's assets in May, Cerved reported that their assumptions were based on the failed compliance with business plan's goals, badly affecting the economic-financial plan”, the “consequente non compliance with bond financial terms” and the need to “negotiate a standstill agreement with Banks by October 2017”.
Shareholders' refusal (asked to accept payment standstill until late February, raising interest rates) prevented formalizing final agreement with Banks, which, according to Managing Director Silvio Bartolotti, was almost sealed.
In essence, according to Cerved, “failed standstill agreement and unpaid loan expired on October 29th , will lead to Micoperi's default”.
Nevertheless Bartolotti reported that “in a couple of days we will convene shareholder's meeting again and I confide our proposal will be approved. We intend rescuing a company recruiting 1,300 workers”.
Major risk is that, pursuant to regulations in case of failed payment of the loan, even a single shareholder (Sgr Arca, Zenit and Duemme, Fondazione Cassa di Risparmio di Vercelli, Banca Popolare di Vicenza), could demand full repayment from Micoperi, obviously hurting the restructuring plan of the old-dating Ravenna-based company.