A DUBLIN-based finance company within the Giorgio Armani group of companies has applied to the Commercial Court to reduce its share premium account by some €522m so as to distribute profits to shareholders.
The application will not affect the solvency of either the company or the wider Armani group, Mr Justice Peter Kelly was told.
The group had net assets of some €1.3bn and net profits of some €180m in the year ended December 2011 and there was no material change in that position since, it was stated.
The judge agreed to fast-track in the Commercial Court the hearing of the company's petition and it will be heard next month.
The petition has been brought by GA Corporation Finance Ltd, with registered offices at Grand Canal Harbour, Dublin. It is a finance company within the wider Giorgio Armani group whose ultimate parent is based in Milan, Italy.
The judge heard the share premium account of the company is some €522m. As the company performs a treasury function within the Armani group, it has few third-party creditors with those amounting to just €124,425 in January last.
The proposed share premium account reduction was sanctioned by a resolution of the company passed last November.