MT

Debt-laden Italian steelmaker ADI wins appeal against cuts to its gas supplies

MILAN, Feb 15 (Reuters) - An Italian appeals court ruled on Thursday that energy companies should continue to supply gas to steelmaker Acciaierie d'Italia (ADI), which is majority-owned by ArcelorMittal MT.LU, for the time being, ADI said.

Italy's top administrative court upheld the company's appeal against a ruling by the Milan administrative court TAR in January, which had cleared the way for energy companies to cut off gas supplies to ADI, formerly known as Ilva, over mounting debts.

TAR will now make a final ruling on the merits of the case but no date has been set for that.

ADI, weighed down by an increase in energy prices and a drop in rolled steel coil prices, has run out of cash and has accumulated a huge debt pile with suppliers.

These include energy giant Eni ENI.MI, owed 104 million euros ($111.89 million) by the steelmaker as of the end of June 2023.

ADI also has more than 200 million euros in outstanding payments to Italian gas grid operator Snam SRG.MI, the steelmaker's last resort supplier, which had asked TAR for permission to cut off its gas supplies.

Italy will put ADI under special administration to keep it afloat, the government told trade unions last month.

($1 = 0.9295 euros)

(Reporting by Emilio Parodi, editing by Gianluca Semeraro and Susan Fenton)

((emilio.parodi@thomsonreuters.com; +39 06 8030 7744; Reuters Messaging:))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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