Second auction likely in autumn with possible 25% discount

The first auction for the assets of bankrupt superyacht builder Perini Navi attracted no bidders. It appears that the required €62.5m base price plus €10m deposit was too high.

A second auction is now likely be held in the autumn, according to Italian media reports, at which a discount on the base price of around 25% is being suggested.

Of the three declared potential bidders, the joint venture ‘Newco’ company formed by Sanlorenzo and the Ferretti Group, and TISG (The Italian Sea Group), both made it known prior to the auction bid deadline of 29 July 2021 that they would not be bidding. Palumbo Superyachts, which had said it would announce its planned action but seemingly did not, also decided not to bid.

There had been indications that the Azimut-Benetti group was also interested in the Perini Navi assets, but if that is the case they also chose not to bid.

The core reason against there being a bid was that the base bidding price of €62.5m, which had been placed on the assets of Perini Navi by Franco Della Santa, the bankruptcy administrator, was too high and took no account of the investment that would be required, estimated at a minimum of €20m, to relaunch the brand.

With the plan now for a second auction to be held in the autumn, possibly by the end of September, if a discount of 25% is achieved that would provide a reduction of €15.625m which would go most of the way to meeting the relaunch cost. However, it may still not be enough.

The planning of this new auction will be in the hands of the Court of Lucca, which initially declared Perini Navi bankrupt last January, the creditors committee and the bankruptcy administrator. Many of the creditor businesses are engaged in the marine sector and there are fears that some may not survive.

Also seriously affected by there being no successful outcome to the auction are the 75 or so Perini Navi workers who have now not been active for over six months. Their wages are being met by the redundancy fund but this will only extend into early 2022, so the sooner a second auction can be held and Perini Navi restarted, the better.