Giovanni Costantino and his son Gianmaria Costantino announced their resignation with effect from 20 July. Under Italian company law, this decision automatically triggers the dissolution of the entire board of directors, as the majority of the directors appointed by the shareholders are no longer in office. The current board of directors of The Italian Sea Group (TISG) will continue to manage the company on an interim basis until the shareholders appoint a new board. An extraordinary general meeting is scheduled for 11 September. The outgoing management stated that they had done everything possible to overcome the company’s crisis and to drive forward the restructuring efforts.
About the shipyard group These include the Tecnomar, Admiral, Picchiotti and NCA Refit brands, the furniture manufacturer Celi, and the Italian shipyard Perini Navi, which, through the the dramatic sinking of the 56-metre sloop “Bayesian” ran into financial difficulties and months of negative press coverage landed. A change in the company’s management is now intended to strengthen stakeholders’ confidence and ensure continuity.
Restructuring is continuing
The resignations come just a few weeks after TISG initiated a court-supervised reorganisation procedure. In early July, the court in Florence approved measures enabling the shipyard to continue operations whilst a restructuring plan is being drawn up. These measures prevent yacht owners from terminating existing contracts on the grounds of the shipyard’s failure to deliver, or from enforcing associated guarantees. In addition, key suppliers involved in projects nearing delivery are being granted temporary relief. The shipyard states that the court measures will support the completion of ongoing yacht projects and the implementation of the restructuring strategy.
Plans to raise capital
Subject to the approval of suppliers, customers and banks, TISG is considering a capital increase of around 100 million euros from the fourth quarter onwards. The measure is intended to strengthen the company’s financial position. Earlier this year, the shipyard had a Net debt of over 178 million euros reported. Despite stepping down as Chairman of the Board and CEO, Giovanni Costantino remains the majority shareholder of TISG. Through GC Holding S.p.A., he indirectly controls 53.6 per cent of the share capital. Gianmaria Costantino holds no shares in the company. The shipyard emphasises that none of the managers who have resigned raised any objections or disputes regarding board decisions in connection with their resignations.
Future of the superyacht group uncertain
The coming weeks will be crucial for the future of the Italian Sea Group. The election of the new board of directors on 11 September will reveal the direction the company is set to take. Potential investors are monitoring developments closely. The group boasts established brands with a long tradition in the superyacht sector. Perini Navi is regarded as an icon in the field of large sailing yachts, whilst Admiral and Tecnomar have made a name for themselves in the motor yacht segment. Should the restructuring prove successful, these assets could lay the foundations for a fresh start. However, much depends on whether the trust of customers, suppliers and banks can be restored.
Martin Hager
Editor in Chief YACHT
