Risanamento "Surprised" By Prosecutors Plan Rejection

Risanamento SpA (RN.MI), the Italian real estate developer facing bankruptcy, said Monday it was surprised by a Milan court's rejection of a restructuring plan already approved by the company's board and its creditor banks.

In a short statement, the Milan-based firm said it hopes the judge that will asses the case at a bankruptcy court Tuesday will approve the plan.

Risanamento is facing bankruptcy after two Milan-based prosecutors in July filed an insolvency request due to the company being EUR2.8 billion in debt. The two prosecutors, according to judicial sources, Monday rejected the plan and sent their comments to the judge.

Risanamento's creditor banks, which include Italy's two largest lenders, Intesa Sanpaolo SpA (ISP.MI) and UniCredit SpA (UCG.MI), have already pledged to support a capital increase worth up to EUR135 million and have said they would also back-up a bond of around EUR270 million.

Separately, Intesa Sanpaolo's chief executive, Corrado Passera, Monday said he yet had to be informed of the rejection and reiterated the soundness of the restructuring plan.

-By Sabrina Cohen and Alessandro Mocenni, Dow Jones Newswires, [phone]; [e-mail]

(Rosario Murgida contributed to the article.)