The Italian Sea Group has arranged a EUR25 million shareholder loan from its majority investor, GC Holding, after flagging budget overruns on most of its active yacht builds and issuing a profit warning. Management said the cost overruns have weighed on the group's cash position by compressing margins and increasing funding requirements.
GC Holding, which owns 53.6% of the company, provided the facility on concessional terms. The loan carries no interest, no fees, will be disbursed in a single tranche and offers repayment flexibility through the end of 2032. The shareholder financing is contractually subordinated to the companys existing EUR115 million bank loan until those bank lenders have been fully repaid.
In response to the situation, the board of directors has launched an independent audit by a leading firm to review operational management and the status of ongoing projects. The board also resolved to prepare a capital strengthening plan and to engage with financial institutions as part of that process.
Company communications cited an expected market recovery as part of the rationale for the support provided by GC Holding. The statement referenced recent signings of two new contracts for giga-yachts over 80 meters as indicators of prospective market activity, while noting that present project overruns have already affected financial metrics and liquidity.
The shareholder loan is structured to sit behind the banks claims - explicitly subordinated to the EUR115 million bank facility - which preserves the seniority of bank debt until repayment in full. The loan's interest-free and fee-free mechanics, along with its single-tranche disbursement and extended repayment window, reflect the shareholder's decision to offer highly favorable terms to the operating company.
The board's commissioning of an external audit and the commitment to formulate a capital plan indicate a dual focus on investigating project management execution and addressing the balance sheet implications of cost inflation across the fleet. The company also signalled it will open discussions with financial institutions as part of the capital-raising and restructuring options under consideration.
No new financial figures beyond the EUR25 million shareholder loan and the reference to the EUR115 million bank loan were disclosed in the company's public statement. The firm emphasised the link between current cash strain - driven by reduced margins and ongoing funding needs for projects - and the decision to accept shareholder support while pursuing a broader capital solution.