Italian tour operator seeks bankruptcy protection
Italian tour operator seeks bankruptcy protection
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AFP
MILAN - Italian tour operator Valtur said Thursday it was seeking protection from creditors following a slump in tourism in Italy this summer as well as political upheaval in north Africa where it operates.
Valtur said in a statement that its restructuring plan would ensure "corporate continuity and the safeguarding of jobs" but sell off non-core assets and holiday villages for a value of 110 million euro ($151 million).
It said it would also increase its capital by up to 50 million euro.
The company, founded in 1964 at the height of Italy's post-war boom, has a turnover of around 200 million euro a year.
It has built up debt of 303.6 million euro to banks, suppliers and state institutions.
It employs more than 4,000 people and has 22 holiday villages in Italy and abroad including in Egypt and Tunisia, where tourist numbers are sharply down due to the revolutions there this year and the ongoing conflict in Libya.
Like other firms in the sector, Valtur was badly hit by the global economic crisis as well as longer-term changes in how people spend their holidays that have undermined holiday village operators like Club Mediterranee in France.
Tourists coming to Italy on organized tours were down 21 percent this summer compared to last year and revenues in the sector also dropped 17 percent, according to the latest data from the main industry association, Federviaggio.
Valtur said in a statement that its restructuring plan would ensure "corporate continuity and the safeguarding of jobs" but sell off non-core assets and holiday villages for a value of 110 million euro ($151 million).
It said it would also increase its capital by up to 50 million euro.
The company, founded in 1964 at the height of Italy's post-war boom, has a turnover of around 200 million euro a year.
It has built up debt of 303.6 million euro to banks, suppliers and state institutions.
It employs more than 4,000 people and has 22 holiday villages in Italy and abroad including in Egypt and Tunisia, where tourist numbers are sharply down due to the revolutions there this year and the ongoing conflict in Libya.
Like other firms in the sector, Valtur was badly hit by the global economic crisis as well as longer-term changes in how people spend their holidays that have undermined holiday village operators like Club Mediterranee in France.
Tourists coming to Italy on organized tours were down 21 percent this summer compared to last year and revenues in the sector also dropped 17 percent, according to the latest data from the main industry association, Federviaggio.
