Shares in The Italian Sea Group fell as low as €1.12 on 22 May, down from €1.71 the day before, after the board conceded the previous evening that losses had eaten through the company’s share capital. They closed at €1.43 and have drifted around the same mark since, leaving the stock down 18.5 per cent over five days and roughly 65 per cent since the start of the year.

TISG has acknowledged that its €26.5 million of share capital, split across 53 million shares, no longer covers what it has lost. According to the Italian Civil Code, this is now a matter under Article 2447, which comes into effect when losses drag a company’s capital below the statutory minimum. The shipbuilding group has called shareholders to a meeting on 22 July to decide what happens next.

The pull-back from the intraday low spares the board the headline of a one-session collapse, but the meeting will ultimately determine whether shareholders recapitalise, transform or wind up.

The agenda runs to the company’s financial and equity position and the resolutions that follow from it. Attendance is permitted only through a designated representative, with no vote from the floor and none by post or electronic means, so whatever is decided will likely be settled in advance via proxies.

How large the loss actually is hasn’t been disclosed, as company documents state that the exact figure is still being determined while insisting it is already certain the capital threshold has been breached.

The scale of the reversal is probably best measured against TISG’s last published accounts for the first nine months of 2025 in September, where the company reported shareholders’ equity of roughly €146 million and a net order book of €416 million within a total backlog of €1.15 billion. For the losses to have pushed below the statutory floor means the lion’s share of that €146 million has evaporated in the time since.

TISG paid €13 million in dividends across those nine months in 2025 and raised €115 million in new seven-year debt last June, so the equity that has disappeared did so even as fresh borrowing came in.

To hold the line while it builds a recovery plan, the board has filed for fresh protective measures under Article 20 of the Crisis Code, which take effect once registered with the Companies' Register. They sit on top of the negotiated settlement TISG filed at the Court of Florence in March, which already shields it from creditor enforcement until 16 July.

The forensic strand has slipped too, as KPMG, engaged in February to examine what the board attributes to the coordinated misconduct of former senior managers, will now not report until late June or early July, with the company citing the loss of its senior management line as one cause of the delay. This means the report will now land barely a fortnight before shareholders convene.

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