Reduce 1/3 debt to about 1.5 billion euros Achieved a new 2.5 million euro equity agreement Separation of Valentino and Hugo Boss Valentino Fashion Group, bought by private equity firm Permira two years ago, said on Wednesday that it agreed to restructure assets and cut one-third of its debt to 1.5 billion euros (2.2 billion U.S. dollars). According to a Reuters report, Valentino Fashion Group stated in a statement that Permira and the Italian Marzotto investment family through the Red & Black Corporate Control Group have reached an agreement to provide more than 250 million euros in reorganization assets. The group stated that this transaction includes "restructuring the group structure under the control of the major shareholders, Red and Black, and separating the ownership of Hugo Boss and Valentino Fashion Group." Hugo Boss of Germany is one of the three brands of Valentino Fashion Group. The other two brands include Valentino and Marlboro Classics. Valentino Fashion Group stated that Creditor Bank Citigroup will sell its claims to Red & Black Group, while Italian Commercial Bank Mediobanca SpA and Italian Unicredit SpA UniCredit SpA will maintain their claim status. The group stated that the remaining debt provisions have been revised to increase the financial flexibility of Valentino Fashion Group to support its development plan. A source close to reorganization earlier this month has revealed that Permira was negotiating to purchase part of the accumulated debt to purchase the capital of Valentino Fashion Group. Hugo Boss shares rose 0.7% to close at 24.41 euros, worse than the performance of the Dow Jones Personal Property Index SPQP, which rose 1.2%. 
Valentino Fashion Group wants to separate Hugo Boss
Valentino Fashion Group stated in a statement that Permira and the Italian Marzotto investment family through the Red & Black Corporate Control Group have reached an agreement to provide more than EUR 250 million in reorganization assets.