A Dublin-based finance company within the Giorgio Armani group has applied to the Commercial Court to reduce its share premium account by €522m so as to distribute profits to shareholders in the future.
The application will not affect the solvency of either the company or the wider Armani group, Mr Justice Peter Kelly was told.
The group had net assets of €1.3bn and net profits of €180m in the year ending Dec 2011 and there was no material change in that position since, it was stated.
The judge this week agreed to fast-track the hearing of the company’s petition in the Commercial Court, and it will be heard next month.
The petition has been brought by GA Corporation Finance Ltd, with registered offices at Grand Canal Harbour, Dublin. It is a finance company within the wider Giorgio Armani group of companies whose ultimate parent is based in Milan, Italy.
The judge heard the share premium account of the company was €522m. As the company performs a treasury function within the Armani group and it has few third-party creditors, with those amounting to just €124,425 in January.
The proposed share premium account reduction was sanctioned by a resolution of the company passed last November, the petition stated. It is proposed to reduce the entire amount of share premium now standing to the credit of that account.
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