Prada asked banks to review its debts
Italian fashion house Prada has been negotiating with several banks about revising the terms of payment of debts. The owner of the house Miuchchia Prada is trying to free up funds for an aggressive policy of expansion, which, despite of the crisis, Prada continues to realize.
According to the Executive Vice President Carlo Prada Matstsi, who has been reviewing the terms of the debt payment, the normal activity of the company did not reveal any of the precarious financial situations of Prada, nor other difficulties.
Creditors of Prada, among which are the Italian banks UniCredit and Intesa Sanpaolo, will allow the house to transfer payments in the amount of 350 million Euros beginning from the summer of 2010 to 2011 or even 2012. The total amount of Prada’s debt is about 1.1 billion euro. In 2008, the net profit of the Italian house was only 99 million euro; it is 22% lower than at the end of 2007.
