Safilo default warning depresses share price

A warning from Italian eyewear manufacturer Safilo that it might default on its loans caused the company's shares to experience their biggest fall in eight months of trading.

Safilo issued the warning in a press statement in which it reported that Hal Holding had extended its tender offer for the company's senior high yield notes, until November 27.

Under the terms of Hal's recapitalisation plan for Safilo, which would see it inject an estimated €283m of new equity into the company and have a stake of between 37.23 and 49.99 per cent (News 23.10.09), it had to garner 60 per cent of the notes through the tender offer.