(Reuters) - Italy's Trevi Finanziaria Industriale SpA
Trevi said the decision was due to the failure to reach an agreement in relation to some amendments to the terms and conditions of the offer that it deemed essential to reach the goals of the envisaged equity strengthening and restructuring.
Trevi also defined the terms of an alternative transaction providing for a capital increase whose subscription is to be offered with pre-emptive rights to shareholders and a simultaneous conversion of part of the group's financial indebtedness in financial instruments.
Trevi confirmed that there will not be cash shortfalls during the current month assuming that the standstill agreement will become effective by next week.
Based in the northern Italian city of Cesena, Trevi has been hit by a slowdown in the oil and gas industry and a construction downturn, forcing it to restructure its debt, which has risen due to its capital-intensive business model.
(Reporting by Rishika Chatterjee in Bengaluru; Editing by Hugh Lawson)