Identifier
Created
Classification
Origin
08ROME1242
2008-10-08 15:27:00
UNCLASSIFIED
Embassy Rome
Cable title:
ALITALIA'S SPECIAL ADMINISTRATOR GIVES ASSURANCE
how-toVZCZCXYZ0021 RR RUEHWEB DE RUEHRO #1242 2821527 ZNR UUUUU ZZH R 081527Z OCT 08 FM AMEMBASSY ROME TO SECSTATE WASHDC 0990
UNCLAS ROME 001242
SIPDIS
STATE FOR BYERLY IN EEB/TRA
E.O. 12958: N/A
TAGS: ECON EAIR IT PGOV
SUBJECT: ALITALIA'S SPECIAL ADMINISTRATOR GIVES ASSURANCE
OF PAYMENT OF USG-GUARANTEED DEBT
REF: ROME 1231
UNCLAS ROME 001242
SIPDIS
STATE FOR BYERLY IN EEB/TRA
E.O. 12958: N/A
TAGS: ECON EAIR IT PGOV
SUBJECT: ALITALIA'S SPECIAL ADMINISTRATOR GIVES ASSURANCE
OF PAYMENT OF USG-GUARANTEED DEBT
REF: ROME 1231
1. (SBU) Toward the end of negotiations to secure a purchaser
or reorganization for Alitalia, Post learned that the
Export-Import Bank of the United States had guaranteed a
Barclay's Bank loan to Alitalia for the purchase six Boeing
777s. In an October 7 phone call, Augusto Fantozzi,
Alitalia's government-appointed special administrator, told
the Economic Minister Counselor that he "fully anticipated"
that there would be no difficulties in continuing to repay
the loan and that the planes will be transferred to CAI,
Alitalia's successor. This assurance came as a direct
response to inquiries made by Post and to correspondence
received by Fantozzi from Ex-Im. The next payment of about
$15.7 million is due November 22.
2. (SBU) When Alitalia appeared headed for bankruptcy, Ex-Im
requested help in determining the fate of the planes and
asked Post to push for continued repayment of the loan. A
group of Italian investors, known as Cai, has now agreed to
purchase Alitalia. (See Reftel) The company will be split
into two, with the liabilities and debts remaining in the
"bad company," to be liquidated, and the assets and
profitable portions of the company passing to Cai.
3. (U) Post has informed Ex-Im Bank of the information
provided by Fantozzi and will follow up with Rocco Sabelli,
CEO of Cai.
SPOGLI
SIPDIS
STATE FOR BYERLY IN EEB/TRA
E.O. 12958: N/A
TAGS: ECON EAIR IT PGOV
SUBJECT: ALITALIA'S SPECIAL ADMINISTRATOR GIVES ASSURANCE
OF PAYMENT OF USG-GUARANTEED DEBT
REF: ROME 1231
1. (SBU) Toward the end of negotiations to secure a purchaser
or reorganization for Alitalia, Post learned that the
Export-Import Bank of the United States had guaranteed a
Barclay's Bank loan to Alitalia for the purchase six Boeing
777s. In an October 7 phone call, Augusto Fantozzi,
Alitalia's government-appointed special administrator, told
the Economic Minister Counselor that he "fully anticipated"
that there would be no difficulties in continuing to repay
the loan and that the planes will be transferred to CAI,
Alitalia's successor. This assurance came as a direct
response to inquiries made by Post and to correspondence
received by Fantozzi from Ex-Im. The next payment of about
$15.7 million is due November 22.
2. (SBU) When Alitalia appeared headed for bankruptcy, Ex-Im
requested help in determining the fate of the planes and
asked Post to push for continued repayment of the loan. A
group of Italian investors, known as Cai, has now agreed to
purchase Alitalia. (See Reftel) The company will be split
into two, with the liabilities and debts remaining in the
"bad company," to be liquidated, and the assets and
profitable portions of the company passing to Cai.
3. (U) Post has informed Ex-Im Bank of the information
provided by Fantozzi and will follow up with Rocco Sabelli,
CEO of Cai.
SPOGLI