Italy’s Banks Warn of Risks in Oaktree’s Progetto Rescue

Italy’s biggest lenders are seeking to revise a plan to rescue Oaktree Capital Management’s Banca Progetto SpA after warning that new developments in a criminal investigation have heightened legal risks.

Intesa Sanpaolo SpA, UniCredit SpA and three other Italian lenders sent earlier this month a letter to commissioners appointed by the Bank of Italy to oversee Banca Progetto’s administration, according to people familiar with the matter who asked not to be named because they aren’t authorized to talk about it. In the letter, they warned that the bailout deal agreed earlier this year was based on incomplete information, they said.