Mariella Burani Fashion Group (MBFG), owner of the shoemaker Baldinini, has postponed until Dec.16 an extraordinary general meeting to authorize the company to launch a capital increase of up to €100 million. The funds can be raised in one or several transaction over a five-year period. Shareholders will also be asked to allot €83.5 million in funds, stemming from unused reserves and the capital increase, to cover cumulated losses.

The previous dates scheduled for the meeting were Oct. 30 or Nov. 16, but they elapsed after the Burani family, which controls 71 percent of MBFG through Mariella Burani Family Holding, failed to turn up. The family intends to postpone any decision regarding the recapitalization until an agreement is reached with creditor banks regarding the rescheduling of the group’s debt.

MBFG is still holding talks with the banks and expects to reach a preliminary agreement by mid-December, with the finalization of the deal forecast for the end of the year. There are also insistent rumors about a possible investment in MBFG by the Korean E-Land group. Meanwhile, the group has sold one of its numerous apparel brands, Enrico Mambelli.

The Italian fashion group does not rule out the possibility that the EGM may have to be further postponed to the first half of January with the same agenda. However, according to the evolution of the situation the agenda could be modified and even include a request for debt protection, it added.

At the end of August, the group had net debt of €478.1 million and €19.8 million in cash.