The Italian Sea Group: Costantino resigns as Chairman and CEO, entire Board steps down

The move had been widely anticipated, but it came sooner than expected, announced in a press release issued just a few minutes ago. Giovanni Costantino has resigned as Chairman and Chief Executive Officer of The Italian Sea Group, while director Gianmaria Costantino has also stepped down. Their simultaneous resignations automatically cause the entire Board of Directors to cease office, as required by the company’s bylaws once the majority of directors appointed by the shareholders’ meeting is no longer in place.

The Board will remain in office only under a prorogatio regime, carrying out solely the actions necessary to ensure business continuity until the shareholders’ meeting is convened to appoint a new Board of Directors.

The most significant part of the announcement, however, lies in the reasons behind the decision. After leading the group through the most difficult months in its recent history and setting the restructuring process in motion, Costantino believes that a new governance structure can now do more to strengthen the confidence of creditors, customers, suppliers and the company’s other stakeholders. In practical terms, this amounts to an acknowledgement that a change in operational leadership is needed, while ownership remains unchanged. Costantino will continue to control the company through GC Holding, which owns 53.604% of The Italian Sea Group’s share capital. The leadership changes, but control of the company does not.

The decision comes against the backdrop of the restructuring process already underway, including the negotiated crisis settlement procedure, the protective measures granted by the Court, the legal actions brought by several yacht owners and the social safety measures introduced for part of the workforce. Throughout this period, production activities and ongoing yacht construction projects have continued without interruption.

The company also states that the resignations were not prompted by disagreements with the company or by dissent over decisions taken by the Board. No severance payments or other benefits are envisaged in connection with the resignations, while Gianmaria Costantino will continue his employment relationship with the group.

The Italian Sea Group is now entering a decisive new phase. The appointment of a new Board of Directors will be more than a legal requirement: it will be the first real test of the company’s restructuring plan. The composition of the new board, its degree of independence and its ability to restore market confidence will provide a clear indication of the direction the group is likely to take in the months ahead.

©PressMare - All rights reserved