Mariella Burani Fashion Group SpA's (MBFG.MI) board will meet Tuesday afternoon to seek ways to avoid filing for bankruptcy protection after the debt-laden company missed a Monday deadline to agree on a restructuring deal with its creditors banks, people with knowledge of the situation told Dow Jones Newswires.

"It is unclear if there is a positive way out for Mariella Burani," one of the people said, adding that insolvency proceedings remain one of the possible options for the Italian fashion group.

The company wasn't immediately available for a comment Monday.

The decision to call a board meeting Tuesday comes after the company scrapped a shareholders' meeting originally scheduled for Monday to approve a capital increase, among other measures, designed to stave off bankruptcy protection.

Mariella Burani, which is still negotiating a debt restructuring agreement with a group of financial institutions and looking for a new strategic partner, said its net debt stood at EUR479.9 million at the end of September.

It said in a statement late Friday that its board would have been called soon to discuss several options, including insolvency proceedings, rescheduling the shareholder meeting or calling another one with a new agenda taking into account a debt deal "now under negotiation with banks."

Earlier this month Mariella Burani said it had had contracts with South Korean E. Land Group and other potential investors, but that no official proposal had been made.

The company's creditors include UniCredit SpA (UCG.MI), Intesa Sanpaolo SpA (ISP.MI), Westdeutsche Landesbank and Banco Popolare (BP.MI).

A global downturn in spending on luxury goods has severely hit companies in the sector. Italian companies which have faced particular difficulties include debt-laden luxury eyewear maker Safilo SpA (SFL.MI) and IT Holding SpA (ITH.MI), which is now under bankruptcy protection.

-By Sabrina Cohen and Chiara Vasarri, Dow Jones Newswires, +39 06 69766923; chiara.vasarri@dowjones.com
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