By
Reuters
Published
Apr 21, 2010
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Special administration urged for Mariella Burani

By
Reuters
Published
Apr 21, 2010

REGGIO EMILIA, Italy, April 20 (Reuters) - A court-appointed commissioner said on Tuesday 20 April he had called for debt-laden Mariella Burani Fashion Group (MBFG) (MBFG.MI) to be placed under special administration.

Burani

The procedure will not apply to the Burani family's leather goods company Antichi Pellettieri (AP.MI) or other Mariella Burani subsidiaries, commissioner Francesco Ruscigno told Reuters.

Special administration aims to revive companies in financial difficulties and avoid closing them down.

Ruscigno recommended special administration on Friday 16 April to the Industry Ministry and to a court in Reggio Emilia, Mariella Burani's hometown.

The ministry must issue its own findings. The court then will formally decide on special administration.

MBFG has been struggling with nearly 500 million euros ($673 million) in debt, the result of a string of acquisitions. It employs about 2,000 people in Italy.

The Reggio Emilia court declared the company insolvent last month. In January, a Milan court declared the Burani family's Burani Designer Holding company, which indirectly controls MBFG, insolvent.

MBFG shares have been suspended from trading since the end of August. ($1=.7431 Euro)

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