A Bet on a Busted Airline Is Poised for a $100 Million Payoff
Italian financial firm J-Invest stands to gain after a court ordered Italy’s government to compensate Itavia’s creditors and shareholders.
Jacopo Di Stefano at his office in Bologna, Italy.
Photographer: Photograph by Elisabetta Zavoli for Bloomberg BuisnessweekIn 2008, Jacopo Di Stefano opened a small investment company aiming to buy loans taken out by bankrupt Italian businesses. The wheels of Italian justice can move excruciatingly slowly, so he figured he could make some money by giving frustrated creditors a tiny fraction of the face value of loans that they’d long given up on and cashing in if they’re ever paid off. Working alone, he spent hours studying cases, looking for anywhere it appeared the debtors could be forced to repay.
Among the faded corporate stars he uncovered, one company stood out: Aerolinee Itavia SpA. The airline had operated on and off from the late 1950s to 1980, offering short-hop domestic flights in competition with Italy’s flag carrier, Alitalia SpA. On June 27, 1980, Itavia Flight 870 from Bologna to the Sicilian capital, Palermo, plunged into the Tyrrhenian Sea about 50 miles shy of its destination. All 81 people on board were killed.