Pillarstone Italy, the private equity turnaround firm sponsored by KKR, announced yesterday the details of a relaunch plan for Rainbow Magicland spa, the managing company of the eponymous Rome-based amusement park, including investments for 40 million euros in the next 4 years (see here the press release).
The new ceo Guido Zucchi, just appointed by Pillarstone Italy to lead the company. will implement the plan. Zucchi has more than 10 years experience in the field, gained in Parques Reunidos before becoming director of the amusement parks division Europe and then as general manager of a theme park inspired by Hollywood, inaugurated in Dubai in December 2016.
In 2015 Pillarstone Italy bought from Intesa Sanpaolo and Unicredit the respective exposures towards Alfa Park srl, the holding company of Rainbow Magicland spa, at the same time as it purchased other loans classified as impaired claimed by the same banks against other companies (Burgo, Orsero, Comital Saiag, Lindberg, Manucor and Sirti, see here a previous post by BeBeez).
On November 29 th2018, the Court of Brescia approved the debt restructuring agreement pursuant to art. 182-bis of the Italian Bankruptcy Law on a total debt of about 200 million euro, which regards both Rainbow Magicland and the parent company Alfa Park. The transaction involved seven banks in detail (three of which have signed up to the restructuring agreement and four that have transferred their respective receivables to Rainbow Magicland to the securitization vehicle Pillarstone Italy spv srl) and four leasing companies, which have to the restructuring agreement.
At the same time Pillarstone Italy, through its subsidiaries Pillarstone Italy spv srl and PS Parchi spa, has subscribed a reserved capital increase of Rainbow Magicland, becoming its sole shareholder. The share capital increase was partially subscribed by offsetting a portion of the loans in the portfolio and partly by cash. At the same time, Rainbow Magicland issued participating financial instruments that were offered in subscription to the financial lenders participating in the restructuring agreement.
On the legal level, Pillarstone was assisted by DLA Piper, the banks and leasing companies by Molinari and Associates, while Rainbow Magicland and Alfa Park were supported by Mendolia & Partners.
Rainbow Magicland closed FY 2017 with 12.4 million euros in revenues, a negative ebitda of 3.2 million euros, a net loss of 10.9 million euros, a net financial debt of 79 million euros and a negative equity of approximately 50 million (see here the analysis by Leanus, after free registration and login)
As for Alfa Park srl, based in Valmontone, it is currently in liquidation and has therefore put on the market the participation in the theme park Miragica in Molfetta (Bari).