T.I.S.G. Asia Investment Holding Limited says it has lodged a €250 million ($278.6 million at the 6 November euro-dollar close of 1.1142) proposal with the Court of Florence for The Italian Sea Group’s business as a going concern. The Hong Kong company puts the bid €30 million above the €220 million reference offer from SRI Group Global, and has asked the court to admit it to the competitive process. Chief executive Traugott Kaminski is in Florence, according to its press release.
The release is dated Sunday 15 November. The court set the auction for Monday 16 November, due to conclude by 5pm Italian time (4pm UK). It is not yet known whether the auction will go ahead as planned or whether the court will admit the new proposal. TISG’s board named SRI’s offer as the reference bid from five binding offers on 2 November, as the basis of the restructuring plan it filed with the court, and reserved the right to consider others. T.I.S.G. Asia says it objects to being excluded from that process.
What the Proposal Covers
The proposal takes in the Italian yards and brands, Celi S.r.l. and TISG Turkey. Production of Admiral, Tecnomar, Perini Navi and Picchiotti would stay in Italy under a European management team, and yachts already in the order book would be completed. The company’s August proposal put that order book at 16 hulls and pledged no headcount reduction tied to the deal.
The release adds that unsecured creditors, including subcontractors and suppliers, are expected to recover around 10 per cent under the proposals now under consideration. It gives no source for the figure.
Traugott Kaminski, CEO of T.I.S.G. Asia Investment Holding Limited:
A €250 million going-concern proposal is now before the court. Creditors, including the suppliers and subcontractors who build these yachts, are entitled to see it compared like for like with every other offer.
Who Is Behind It
The release describes the backer only as a Hong Kong investor with holdings in sport, yachting and French wine labels, using permanent capital with no fixed exit. It names no investor and states that no statement is made on any investor’s behalf. T.I.S.G. Asia’s August proposal named TGG Group as its capital partner, and in September the company said it was owned 50 per cent by Lit Yachting Limited and 50 per cent by Kaminski.
The release does not say whether the €250 million includes the capital for restarting operations. The offer is subject to the court’s procedures, regulatory approvals and final documentation.
