According to Bloomberg, Centerbridge Partners is attempting to terminate the agreement to acquire Banca Progetto from Oaktree Capital Management. Red Uk Holdco, an entity associated with Centerbridge, has filed a request in a London court seeking recognition of its right to immediately withdraw from the bank acquisition deal.
Court documents reveal that Centerbridge claims contractual conditions were not met because the bank allegedly failed to resolve issues related to anti-money laundering control systems before the deal`s finalization in September.
Approximately four weeks after the agreement was concluded in September, the Milan court ordered the judicial administration of Banca Progetto. Investigators explained at the time that this measure was `the result of broader investigations` carried out by the Milan DDA, focusing on alleged `relationships between the financial institution and individuals linked to `Ndrangheta groups`.
Centerbridge argues that this situation constitutes a clear breach of the agreed terms. Following the Milan court`s decision, the Italian banking supervisory authority launched an investigation, leading to the commencement of extraordinary administration proceedings on March 21st, and the subsequent dismissal of the bank`s board of directors.