Italian Banks Agree to Aid Struggling Fiat
Dow Jones and Associated Press
Three major Italian banks have agreed to help indebted Fiat with what amounts to a more than $2.7-billion loan and an offer to acquire 51% of the troubled auto maker’s auto loan business, both sides said.
Under the deal with Banca di Roma, IntesaBCI and SanPaolo IMI, Fiat aims to cut its net debt--the difference between its total debt and its assets--in half to more than $2.79 billion by year end under a broad restructuring. Fiat’s total debt is estimated at $30.64 billion.
