Premafin Finanziaria SpA (PF) will propose to its bank lenders to convert part of their loans into equity in a meeting tomorrow, Il Sole 24 Ore reported, without saying where it obtained the information.

Premafin will ask banks to convert 150 million euros ($201.7 million) of debt into shares of the new entity that will result from the planned merger of Premafin with Unipol Gruppo Finanziario SpA (UNI), Fondiaria-Sai SpA (FSA) and Milano Assicurazioni SpA (MI), the newspaper reported. The company will ask banks to reschedule the remaining 170 million-euro debt, Il Sole said.

To contact the reporter on this story: Francesca Cinelli in Milan at fcinelli@bloomberg.net

To contact the editor responsible for this story: James Ludden at jludden@bloomberg.net