Alitalia to hire financial advisers after filing administration

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Alitalia will hire one or more financial advisers to manage its sale
after plunging into administration last week, according to Luigi Gubitosi, one of three commissioners picked by the government to run the ailing flag carrier.

At a press conference at Rome’s Fiumicino airport on Wednesday, Mr
Gubitosi said Alitalia would be conducting a ‘beauty contest’ and expected to select investment bankers quickly.

Alitalia reiterated it would publish a tender for the sale next week, with non-binding offers due in July.

The airline began administration proceedings on May 2 after Alitalia workers rejected the airline’s restructuring plan in a referendum in mid- April.

The vote forced Alitalia’s investors – including Etihad of the UAE- to withdraw its commitment to a new financing package. The Italian government stepped in to offer a €600m bridge loan – of which €220m has already been paid – to keep the airline afloat. But it has ruled out nationalisation.

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