Cimolai Spa suffocated by derivatives. Debt of 600 million, transactions without the knowledge of the Board of Directors

PORDENONE – This time the big bills or the cooling of the markets with the drop in orders they have no responsibility. To make the red light come on at the Cimolai Spa, the Pordenone company specialized in the construction and installation of large steel works around the world.

Cimolai in crisis, the fault of derivative transactions

Was one or more derivative transactions who have missed the target with series impact which are still being evaluated. A situation that may have created discovered just under 400 million euros it’s a financial crisis which could have, in a not long time, repercussions also on corporate structures. Luigi Cimolai, the owner of the Pordenone company, declined the invitation to speak even though, from sources close to him, it seems that the top management did not know anything about these operations and only on 8 September the big financial problems of the company would have been discovered. This, at least, would be the version that leaks from the company.

Hidden financial transactions

The road of derivatives for the advances on the guarantees for the realization of the great worksfinancial instruments necessary for companies that work a lot abroad and manage cash flows and payments in foreign currencies, would have been chosen by the CFO, the company’s financial director, unbeknownst to the Cimolai top management. The financial problem would be related to the collapse of the euro against the dollar that would have created the financial chasm. The first sign of the crisis came towards the end of September when Cimolai’s CFO and another manager were removed from office. But that is not all. To run for cover he was entrusted to Lazardthe investment bank among the most active and important in advising companies on mergers and acquisitions, restructuring, raising capital and corporate finance, the task of assessing the situation and impact of the operation.

The Board of Cimolai Spa

To further aggravate an already worrying picture, the death of the founder of Cimolai, Armando, the captain of industry whose funeral was celebrated on Wednesday. He had been hospitalized urgently for a heart problem a week before he died. But there is still another sign that can be indicative of the gravity of the situation. A board of directors of the company, essential for understanding how to move forward, was held on Tuesday, the day before the founder’s funeral. Little or nothing has emerged from the tight meshes of privacy. Certainly no possibility is excluded, including that of entering the company of fresh money with new partners level, but not even one is to be discarded appeal to the Business Courtspecialized section at the Courts of Appeal, just to find solutions a crisis of large companies. In the coming days you will be able to find out more. The reserve also remains on theexposure of Cimolai. The figure, as mentioned, would be just under 400 million and the most exposed bank should be there Deutsche Bank. The Bloomberg financial agency was the first to talk about the financial crisis of the Pordenone company. According to Bloomberg, Cimolai would also be exposed for another 233 million with Unicredit and Intesa San Paolo.

Cimolai, workers at risk?

There are now also to understand repercussions on the employment front. The company counts approx a thousand employees, but with the induced it provides work for around 3,000 people. Orders are not lacking, the company has just secured the construction of the metal deck of the new Nantes bridge in France, a work worth 14 million. The objective is obviously that of trying to maintain current employment levels, but within the factories – where news begins to circulate – there is certainly concern. Those who are even worse are several mostly local subcontractors who have not collected money for some months for the work done on behalf of Cimolai. For some of them, among other things, the great Pordenone company is the sole client. It is therefore easy to imagine the state of tension. Now it is a question of how the group will manage to cope with the considerable financial exposure and overcome the crisis.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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