The leading shareholders of Italy’s Trevi (TFI.MI) have decided not to accept a deal put forward by Bain Capital Credit to rescue the ailing engineering firm, a source close to the situation said on Friday.
The source said Trevi’s main shareholders were committed to seeing through a 130 million euro ($152 million) capital increase.
They were also close to an agreement with creditor banks to convert some of Trevi’s debt into equity and to agreeing a standstill on the debt, the source added.
Based in the northern Italian city of Cesena, Trevi has been hit by a slowdown in the oil and gas industry and a construction downturn, forcing it to restructure its debt, which has risen due to its capital-intensive business model.
It had entered talks with Bain for a deal whose deadline expires on Friday.