OVS S.p.A. has executed a new facility agreement for €100 million to strengthen its financial structure and expedite the process of normalizing payments to its suppliers, postponed due to the loss of revenues as a result of the COVID-19 pandemic, and the consequent forced closure of stores in Italy and in the other countries in which the group operates.
The transaction represents the first financing completed in Italy under the rules provided by the Italian Government’s emergency Liquidity Decree for large companies.
The transaction involved several major Italian credit providers, including Cassa depositi e prestiti and SACE, which issued the “Garanzia Italia”. OVS will use the liquidity to gradually restore payments to Italian suppliers affected by the crisis and to advance the payment of salaries to employees who are eligible for the temporary redundancy fund benefits (cassa integrazione) and whose funds are still to be received as of the date hereof.
Latham & Watkins advised OVS in the transaction with a team led from Milan by partner Marcello Bragliani with partner Antonio Coletti and associates Alessia De Coppi, Guido Bartolomei, and Davide Camasi.