AM InvestCo Italy sends withdrawal and termination notice from the lease and purchase agreement for Ilva business
November 04 2019 - 7:33AM
AM InvestCo Italy sends withdrawal and termination notice from the
lease and purchase agreement for Ilva business
4 November 2019, 13:35 CET
Today, AM InvestCo Italy (‘the Company’) sent to Ilva’s
Commissioners a notice to withdraw from, or terminate, the
agreement (‘the Agreement’) for the lease and subsequent
conditional purchase of the business of Ilva S.p.A. and certain of
its subsidiaries (‘Ilva’), closed on 31 October 2018.
The Agreement stipulates that, in the event that a new law
affects the environmental plan for the Taranto plant so as to
materially impair the ability to operate it or to implement its
industrial plan, the Company has a contractual right to withdraw
from the Agreement. Effective on 3 November 2019, the Italian
Parliament has removed the legal protection necessary for the
Company to implement its environmental plan without the risk of
criminal liability, thus justifying the withdrawal notice.
In addition, the decisions issued by the criminal court of
Taranto bind the Ilva extraordinary Commissioners to complete
certain prescriptions by 13 December 2019 – a term the
Commissioners themselves deemed impossible to meet – failing which
blast furnace number 2 will be shut down. Such prescriptions should
also reasonably and prudentially be applied to the other two blast
furnaces at the Taranto plant. The shutdown would make it
impossible for the Company to implement its industrial plan,
operate the Taranto plant and, generally, perform the
Agreement.
Other serious occurrences, independent of the Company’s will,
have also led to a situation of legal and operational uncertainty
that has further significantly impaired the ability to carry out
the necessary operations at Ilva and operate the Taranto
plant.
All the mentioned circumstances also entitle the Company to
terminate the Agreement under the applicable provisions and
principles of the Italian Civil Code.
In accordance with the content of the Agreement, the Company has
asked the extraordinary Commissioners to take responsibility for
Ilva’s operations and employees within 30 days from the receipt of
the notice of withdrawal and termination.
ENDSAbout
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