Italian Construction Firm Cimolai Seeks Chapter 15 Bankruptcy

Cimolai SpA, the Italian construction firm that suffered severe losses on currency derivative contracts, filed for Chapter 15 bankruptcy on Thursday along with its holding company, Luigi Cimolai Holding SpA.

• The move protects a firm’s US assets while insolvency proceedings play out elsewhere
  • In October, the firm initiated insolvency proceedings in Italy
• Company was hurt by unauthorized foreign exchange derivative contracts conducted by two employees in September, court papers show
  • Potential liability from those contracts close to €300 million ($317 million), per court papers
• Cimolai has pursued claims against broker JB Drax Honore in London
• The case is ...