Italian Sea Group to seek court protection as turnaround talks falter

ROME, July 1 (Reuters) - Italian luxury yacht maker The Italian Sea Group (TISG) said on Wednesday it would seek court protection from creditors after talks with clients ground to a halt, making a turnaround through an out-of-court restructuring process no longer possible.

The company said its board had approved a filing under Italy's insolvency code, a step that would allow it to access court-backed protective measures while it works on a restructuring plan and seeks business continuity.

• TISG owns brands including Admiral, Tecnomar and Perini Navi

• The group said it decided to accelerate the process because delaying action could reduce its restructuring options.

• The yacht manufacturer entered a negotiated crisis settlement procedure in March after a series of governance and financial difficulties.

• In May, it said debt-related financial losses had reduced its share capital below the legal minimum threshold and outlined turnaround measures, including possible asset disposals and contract re-negotiations.

• Last month, a Florence court partially lifted protective measures for five clients, allowing them to exercise contractual rights including terminating agreements.

• TISG said it would update the market on further developments in line with regulatory disclosure requirements.

(Reporting by Giulia Segreti in Rome;Editing by Elaine Hardcastle)