Shutdown at Cartiera Verde Romanello continues, creditors reject debt restructuring

The Italian containerboard and newsprint producer is looking for investors in order to restart business while production remains suspended.

After a four-month production shutdown, the future of the Italian packaging and newsprint manufacturer Cartiera Verde Romanello (CVR) remains uncertain. Roberto Chiodelli, the sole managing director of the Milan-based company, told EUWID that the company had failed to restructure its debts under Article 182-bis of the Italian Bankruptcy Law due to the opposition of some of its creditors, including the credit institute Credito Emiliano.

The existing debt restructuring proposal and the corresponding business plan for Cartiera Verde Romanello had been withdrawn from the Milan court last week, but the company was working on a new one, said the managing director. CVR was aiming for preliminary creditor's settlement proceedings (concordato preventivo) under Italian insolvency law. However, investors would be needed in order for the new plan to be implemented.

Production in the Campoformido di Basaldella paper mill near Udine will therefore remain suspended for the time being. CVR has two paper machines with production capacity of 90,000 tpy of recycled corrugated case material and 60,000 tpy of newsprint. Operations were halted at the beginning of February for financial reasons and due to a shortage of raw materials.