The Bank of Italy has placed Banca Progetto, the Oaktree Capital Management-backed lender, under special administration, dissolving its board and appointing independent administrators to oversee operations, according to a report by Reuters.
The central bank’s decision, described as an “early” intervention, aims to ensure robust governance and restore prudent management practices, according to a statement from Banca Progetto late on Friday.
A spokesperson for Oaktree reportedly confirmed in an emailed statement that the US investment firm remains in close and constructive dialogue with the Bank of Italy. Oaktree is “committed to actively engaging with the extraordinary commissioners to ensure customers and stakeholders can continue to operate with confidence,” the firm stated.
The move follows Banca Progetto’s placement under court administration in October, amid an investigation that included a raid on its headquarters by tax authorities. The probe relates to alleged loans made to an individual arrested on mafia-related charges, though the bank has maintained it is a victim in the case.
Banca Progetto, which specialises in SME lending, was set to be acquired by funds managed by private equity firm Centerbridge Partners in a deal agreed last year. However, the transaction was never finalised.
