Resignations Rock The Italian Sea Group: A New Era Ahead

Giovanni Costantino, the CEO of The Italian Sea Group, and his son Gianmaria Costantino, the chief commercial officer, have both resigned from their positions. This shake-up has major implications for the company, mandating a complete overhaul of its board of directors in line with its bylaws.

The Costantino Legacy

Giovanni Costantino serves not only as CEO but also as the chairman of the board and the controlling shareholder, holding a significant 53.6% stake in the company through his entity, GC Holding. His son, Gianmaria, plays multiple roles as a board member, a non-executive director, and a trusted aide in the governance of the company. With their resignation, the two indicated that a shift in governance was necessary to enhance stakeholder confidence and improve creditor satisfaction. Their statement noted, “The Costantinos did everything possible to address the crisis and bring the Company to its current stage in the restructuring process.”

The Crisis Unfolds

“The crisis” referenced in their announcement stems from a series of financial challenges that have emerged throughout the year. In March, The Italian Sea Group disclosed various unauthorized cost overruns and financial irregularities, which led to criminal complaints being filed against unnamed former executives. The situation escalated in April when the company sought court protections, preventing creditors from enforcing claims and canceling contracts, although five superyacht projects under construction were not covered by these restrictions.

The need for additional protection became apparent recently after stalled discussions with clients, further complicating the company’s financial landscape.

Board of Directors Dissolution

The resignations of the Costantinos have triggered the dissolution of the entire Board of Directors, as the majority of its members are now no longer in office. However, in compliance with Italian law, current directors are staying on an interim basis to ensure operational continuity while a new board is appointed. The company is required to convene a shareholders’ meeting soon to facilitate this process.

Importantly, the dissolution of the board does not hinder the ongoing restructuring processes. The new board will have to adhere to court-mandated deadlines and disclosure obligations since The Italian Sea Group is listed on the Milan stock exchange.

Financial Landscape

As of May 31, The Italian Sea Group reported a substantial net financial debt of €178.8 million (approximately $204.5 million) alongside cash and cash equivalents totaling just €7.5 million (around $8.6 million). Overdue liabilities were reported at €266.8 million ($305.2 million), encompassing various obligations like accounts payable, tax responsibilities, and social security commitments. Since mid-March, creditors have executed 30 payment orders totaling €2.046 million ($2.34 million). Among these, 22 orders were settled for €408,000 (approximately $467,000), while eight remain in different stages of negotiation or dispute.

Company Overview

The Italian Sea Group is well-known in the yachting industry, serving as the parent company for several high-profile brands such as Admiral, Tecnomar, Perini Navi, Picchiotti, and NCA Refit. Additionally, it owns Celi 1920, a custom-furnishings entity, further diversifying its portfolio in luxury maritime services.

Staying Informed

For further details on this unfolding situation and updates regarding The Italian Sea Group, you can visit their official website at The Italian Sea Group.