ORV Manufacturing, a leader manufacturer of nonwovens for applications including automotive, filtration and clothing and a major industrial company within the private Italian IMP Group, has received approval by the court of Padova (Italy) for its debt restructuring plan under the specific provisions of the Italian Bankruptcy Law, which are similar to the Chapter 11 status in the U.S.
“This step represents the desired conclusion of the restructuring process that began about 18 months ago,” says CEO Stefano Lupi “a process that required a drastic turnaround of our business”
Lupi, who was hired by the IMP Group to lead the restructuring process due his international business experience, has been supported by GOP, a major Italian law firm, and KPMG as financial advisor.
The company completed its market repositioning, including a refinement of its product portfolio, and a robust manufacturing and commercial reorganization, which has shown positive industrial results. The economical and financial data for the fiscal year 2013, the balance sheet of which will be officially approved this month, and the first quarter 2014, verify that the aggressive turnaround targets have been achieved. In fact, the company has returned to positive EBITDA after being on the verge of bankruptcy at the end of 2012.
“We are extremely satisfied with the restructuring process that we implemented,” Lupi affirms, “and, despite the painful downsizing of about 150 employees, we are proud of the strength of our historic brand, which has been recognized globally for years for its technical and marketing leadership”.
The company made good and proper use of the new provisions of the Italian bankruptcy laws that offers the opportunity for the reorganization of a debtor's business affairs and assets, providing the company with the chance for a fresh start, subject to the debtor's fulfilment of its obligations under its plan of reorganization, and based on the assumption that the company has the requisite assets, know how and management skills to overcome the crisis through an appropriate business restructuring.