Reuters reported that troubled steelmaker Lucchini, Italy's second largest producer, has requested to be placed under receivership procedures to save it from bankruptcy.
The measure, which involve the appointment of an administrator chosen by the government, aims at saving large insolvent companies.
The company in a statement said that "The board hope it will be possible to find a solution for the company's crisis which can value the efforts so far borne by the firm.”
Russian steel producer Severstal acquired Lucchini, previously owned by the family of the same name, in 2005, but has since sold a majority stake to its owner, Russian businessman Alexei Mordashov, to facilitate its sale.
The disposal of the heavily indebted steelmaker however has proved impossible in the context of falling steel prices and economic recession.
