The Italian Sea Group (TISG) has provisionally selected SRI Group Global Limited’s €220 million offer for its entire business as the basis of a court-supervised restructuring plan, with unsecured creditors expected to receive approximately 10% and no value allocated to shareholders.
The board announced the decision on 2 November after assessing five binding offers with advisers METI Corporate Finance and KPMG Advisory. It will launch a further bidding round and amend the proposal if a better offer emerges.
“The selected bid has not yet been accepted by the company, as this requires prior authorisation from the Court of Florence,” TISG said in a statement.
Final selection
The company stressed that identifying a reference bid does not complete any transfer. Final selection remains dependent on further bidding, discussions with prospective purchasers, checks on their ability to meet commitments and the required court authorisations.
Under the proposed arrangement, the purchaser would lease the business before completing the acquisition. Operations would continue under the new operator rather than TISG, with production continuity and employment levels safeguarded under the plan.
“The company believes it will be possible to enter into the lease agreement with the bidder during the first week of December,” the statement said.
The proposal provides for payment of procedural costs and other priority expenses, full payment of secured claims and approximately 10% for unsecured creditors.
Subordinated creditors would receive nothing. Compensation and restitution rights would also be transferred for creditors’ benefit through a trust, dedicated fund or another legal structure.
Financial debt
Following court confirmation, TISG would enter liquidation and ultimately cease owning or directly operating the business. The restructuring plan is due to be reviewed at a hearing on 11 November.
The proposed sale follows a sharp reversal in the group’s finances. Revenue rose 11% to €404.4 million in 2024, with EBITDA of €70.3 million and reported net profit of €33.8 million.
In 2025, revenue fell 27% to €295.1 million, EBITDA turned negative at €99.2 million and the group recorded a €170.9 million net loss. Shipbuilding revenue declined 27%, while refit revenue fell 59%.
Net financial debt increased from €12.5 million at the end of 2024 to €129.6 million at the end of 2025, while the gross order book fell from €1.24 billion to €1.03 billion.
Creditor agreements
The crisis emerged publicly in February 2026, when the company disclosed significant costs above budget across yacht construction projects and accounting irregularities.
These undermined previously reported project profitability and contributed to the subsequent financial deterioration. The company commissioned an independent forensic investigation to establish the extent of the discrepancies.
In March, TISG entered Italy’s negotiated crisis-settlement procedure, designed to help financially distressed businesses reach agreements with creditors while retaining management control and continuing operations with the assistance of an independent expert.
The Court of Florence granted creditor-protection measures in April. By May, however, accumulated losses had reduced the company’s share capital below the statutory minimum.
The company requested closure of the negotiated settlement on 30 June and moved to the court-supervised restructuring framework under Article 44 of Italy’s Crisis and Insolvency Code in July.
This provided time to prepare a formal plan for creditors rather than pursue the earlier negotiated route. A competitive investor process followed in August, with a further 60-day extension granted by the court in September.
Operating business
The proposed lease and sale now seek to preserve the operating business under a new owner while using the proceeds to address creditors’ claims.
The financial update for 30 September recorded €184.2 million in group net financial debt, €1.9 million in cash and €292.3 million in overdue liabilities.
Bank borrowings totalled €150.4 million; lenders had not exercised their right to demand immediate repayment following missed installments and covenant breaches.
TISG also postponed approval of its half-year financial report from 3 November to 10 December to complete going-concern assessments and determine their accounting implications.
