Reduce 1/3 Debt to About 1.5 Billion Euro New Agreement to Achieve EUR 2.5 Million Separation of Property from Valentino and Hugo Boss The Italian Valentino Fashion Group, bought by private equity firm Permira two years ago, agreed on Wednesday Restructure assets and cut one-third of its debt to 1.5 billion euros (2.2 billion U.S. dollars). According to a Reuters report, Valentino Fashion Group said in a statement that Permira and the Italian Marzotto investment family, which controls the group through Red and Black, have reached an agreement to provide an additional 250 million euros for the reorganization of assets. The group said the deal includes "restructuring the group structure under the control of major shareholders Red and Black, separating property rights of Hugo Boss and Valentino Fashion Group." Hugo Boss of Germany is one of the three major brands of Valentino Fashion Group and the other two Brands include Valentino and Marlboro Classics. Valentino Fashion Group said Citigroup, the creditor bank, will sell its claims to the Red and Black Group while the Italian commercial banks Mediobanca SpA and UniCredit SpA will maintain their debt status. The group said the remaining terms of the debt have been revised to increase the financial flexibility of Valentino Fashion Group in support of its development plan. Sources close to asset restructuring earlier this month revealed that Permira was negotiating the purchase of part of its accumulated debt to acquire the capital of Valentino Fashion Group. Hugo Boss shares closed up 0.7% at 24.41 euros, up 1.2% from the Dow Jones Commodities Index SPQP poor performance.