Piaggio Aerospace, which entered extraordinary receivership in late 2018, has lined up €30 million ($35.79 million) in new financing, clearing the way for the Italian manufacturer of the Avanti Evo pusher turboprop to fully resume operations and continue the effort to find a buyer. The financing agreement with Banca lfis follows approval from the Italian Ministry of Economic Development and the approval of the Supervisory Committee.
"The agreement, reached at the end of a process that has initially involved other public and private financial institutions, will now allow Piaggio Aero Industries and Piaggio Aviation—the two companies in extraordinary administration that operate under the Piaggio Aerospace brand—to be fully operational,” said Vincenzo Nicastro, the extraordinary commissioner for Piaggio, "thus gradually recalling the workers still in temporary layoffs. The sales process can also be now completed.”
The transaction is the second that Banca lfis has conducted with Piaggio, with the first involving a line of credit granted in 2019.
Nicastro is hoping to find a new owner for Piaggio by the end of the year. Piaggio in late February formally issued a call for expressions of interest and received 19 responses, 11 of which have been undergoing further review.
Bolstering Piaggio’s salability was the receipt of a recent multi-year integrated logistical support contract for the Italian Armed Forces, boosting the company’s overall backlog to €640 million with orders for another €260 million currently in negotiations.