MILAN, Dec 22: Loss-making Italian real estate asset management company Prelios said it sealed a capital increase and debt restructuring deal, enabling it to remain a going concern.

Under the agreement, first outlined in November and finalised on Friday, Prelios plans a capital increase of 185 million euros, of which at least 100m euros will in be in cash and the rest a debt-for-equity swap.

The company will also renegotiate its debt of about 561m euros with creditors, with an estimated 250m euros remaining as debt and the rest being converted into “quasi-equity” instruments, it said in an overnight statement.

Its controlling shareholders are to cover at least 25m euros of the capital increase total.

Investment fund Feidos will take up a further 20m euros, and the fund's head Massimo Caputi becomes vice chairman of Prelios with powers on strategy and development.—Reuters