The Italian government has confirmed it has extended a EUR600 million (USD655 million) bridging loan to Alitalia (AZA, Rome Fiumicino), enough to guarantee operations for six months.
Rome said in a statement the loan has been extended in compliance with European Commission (EC) rules governing state aid for the restructuring of non-financial firms in distress. The funds will be used to ensure Alitalia's as well as its group units' "pressing operational needs".
"Taking into account the social difficulties and serious inconveniences to users that would result from the interruption of air transport services undertaken by Alitalia both nationally and internationally, including those operated as Public Service Obligation in accordance with current European legislation, the decree entails an interest-bearing loan of six hundred million euro, with a duration of six months to be granted by the Minister of Economic Development, in consultation with the Minister of Economy and Finance, within five days after procedures governing extraordinary administration have begun," an official statement issued Tuesday, May 2, said.
Three commissioners have since been appointed to lead Alitalia through the process of extraordinary administration - Luigi Gubitosi, Enrico Laghi, and Stefano Paleari. During the procedure, the trio will determine whether or not debt-ridden Alitalia can be salvaged or should be liquidated.
As an initial step, over the next fifteen days, the commissioners will ask for Expressions of Interest (EOI) from parties keen to acquire the airline.
"As a priority, we will seek (to see) that the whole of the company is bought as part of a bid to revive it," Minister of Economic Development Carlo Calenda told Radio Anch'io.
