Italian prosecutor presents bankruptcy request against CHL

Centro HL Distribuzione SpA

13/12/2019 10:14

MILAN, Dec 13 (Reuters) - An Italian prosecutor has
presented a bankruptcy request against information technology
and e-commerce group CHL  CHL.MI , the company said, adding it
was notified on Dec. 9.
    The board has met to decide how to protect the company
against the Florence prosecutor's action, which it considers
"groundless", CHL said late on Thursday in a statement.
    Under Italian civil law a judge will now assess the
prosecutor's request and decide whether to launch a bankruptcy
procedure against the company.
    Italy's market watchdog Consob last week temporarily
suspended trading in CHL shares after finding alleged
irregularities and possible market abuse.
    Consob said the alleged irregularities related to
information about the company's economic and financial situation
that CHL's top management had provided to investors.
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    Listed in 2000 just before the dot-com bubble burst, CHL is
a relative minnow on the Milan bourse, with a market
capitalisation of just 6.8 million euros ($7.5 million).
    CHL said on Thursday it would press ahead with plans to buy
Polish-based Airtime Sp.Zo.o, Romanian-based Prime Exchange
Technologies and Irish-based Rubelite, though it added it was
negotiating changes to the initial agreements with its
counterparts. 
    A shareholder meeting is scheduled for Dec. 20 to approve a
6.7 million euro capital increase to complete the acquisitions.
    
($1 = 0.9073 euros)

 (Reporting by Giulio Piovaccari; Editing by Kirsten Donovan)
 ((giulio.piovaccari@thomsonreuters.com; +39 02 6612 9743;
Reuters Messaging:
giulio.piovaccari.thomsonreuters.com@reuters.net))