(Adds details, background.)
MILAN (MF-Dow Jones)--The hearing on Italian real estate
developer Risanamento SpA's (RN.MI) possible bankruptcy was Tuesday
adjourned by a Milan judge to Oct. 15.
The decision was widely expected by lawyers and bankers involved
in the case after two Milan prosecutors that filed the insolvency
request to the bankruptcy court Monday rejected Risanamento's
restructuring plan.
The company now has until Oct. 6 to respond to the prosecutors,
Risanamento Chairman Vincenzo Mariconda said after the hearing.
Shares of Risanamento soared Tuesday after the decision, as
investors don't expect the company to be declared insolvent. At
1300 GMT, shares were up 3.6% at EUR0.50.
Risanamento is facing bankruptcy after Milan prosecutors in July
filed an insolvency request after the company announced it had over
EUR2.8 billion in debt.
Creditor banks, which include Italy's two largest banks,
UniCredit SpA (UCG.MI) and Intesa Sanpaolo (ISP.MI), have pledged
to subscribe to a capital increase of up to EUR135 million, as well
as to back up a bond worth EUR270 million if the Milan court
decides not to declare Risanamento bankrupt.
-By Alessandro Mocenni with MF-Dow Jones and Sabrina Cohen, Dow
Jones Newswires; +39 02 5821 9906; sabrina.cohen@dowjones.com
