AMCO – Veneto Sviluppo agreement
AMCO AND VENETO SVILUPPO: PARTNERSHIP TO ACCELERATE CORPORATES’ TURNAROUND IN THE VENETO REGION
- The partnership will provide concrete support for the restructuring and growth processes of worthy companies in the Veneto Region
- AMCO and Veneto Sviluppo will strengthen the corporates’ financial structure, also providing new financing and equity or quasi-equity
Relaunch and merger projects will be favored
Milan, July 24th, 2020 – AMCO – Asset Management Company, one of the main players in the Italian NPEs market, and Veneto Sviluppo, the Veneto Region’s financial intermediary that promotes the economic development of the territory through initiatives for the industrial sector, signed a memorandum of understanding to support worthy companies -currently AMCO’ debtors- that are in financial difficulty in the Veneto Region.
These files consist of UTP (Unlikely To Pay) loans, managed by AMCO and originally owned by Banca Popolare di Vicenza and Veneto Banca.
As part of the partnership, Veneto Sviluppo will be a facilitator for the unlikely to pay loans managed by AMCO, leveraging its deep knowledge of the Veneto’s entrepreneurship and its relationships in the region, so as to support companies in repaying their debt in a time and manner that does not compromise business continuity. Veneto Sviluppo will also be able to promote projects involving one or more debtors to finalise extraordinary and merger deals. AMCO and Veneto Sviluppo will be able to share information on certain credit files in order to encourage the implementation of restructuring plans.
AMCO will evaluate the granting of new financing on a selective basis, together with equity or quasi-equity injections by Veneto Sviluppo or other related financial entities.
In Veneto AMCO manages €2.1 billion of UTP corporate loans originated by the former Veneto banks relating to approximately 5,300 companies. As a result of recent transactions, total NPEs managed by AMCO in Veneto will rise to €7,3 billion[1].
“This new and very important collaboration with AMCO – is the comment of Fabrizio Spagna, President of the Veneto Sviluppo regional financial intermediary – will allow us to approach together, in the full interest of the regional entrepreneurial fabric, the debt positions of those virtuous companies in Veneto that need targeted interventions in order to be able to adapt their repayment plans to meet business continuity.
Working side by side with AMCO, there will also be the possibility to study the best ways to promote projects aimed at strengthening the companies’ capital structure, also facilitating merger processes, restructuring and growth projects, thus making companies -especially the small ones- financially more efficient”.
“The partnership with Veneto Sviluppo – added Marina Natale, CEO of AMCO – will help rebalancing the financial situation of many companies in the Veneto region, also thanks to new financing where it is deemed useful. AMCO is one of the main players in the Italian UTP market, managing 56,000 corporate counterparties with the aim of fostering corporates’ sustainability and of supporting worthy companies, with the objective of business continuity and industrial relaunch. In carrying out its activities, AMCO is a partner for all stakeholders, with particular attention to safeguarding the workforce”.
[1] Managerial data as at June 2020, including Banca Popolare di Bari and MPS transactions.
