China Knowledge quoted two persons familiar with the matter said Shandong Heavy Industry Group Co, parent company of Weichai Power Co Ltd one of China largest manufacturers of diesel engines is looking at the possibility upon acquisition of Ferretti SpA, Europe largest luxury-yacht maker.

The two persons noted that the lenders of Ferretti have agreed to cut debts from EUR 685 million to EUR 116 million after they receive EUR 180 million of additional funding.

Shandong Heavy Industry would take control of the yacht maker, while lenders led by Royal Bank of Scotland Group Plc, Strategic Value Partners LLC and Oaktree Capital Management LP would have rights to subscribe for 25% equity injection worth EUR 100 million which has been underwritten by RBS and SVP. The revolving loan worth EUR 80 million will be provided as well.

A spokesperson for Forli, Italy-based Ferretti which was hit hard by the global economic crisis declined to comment.

Mr Salvatore Basile CEO of Ferretti visited Weichai Power in November 2010 about the asset sale.

(Sourced from China Knowledge)