Troubled Central and Eastern European real estate group Orco said on Wednesday that its full-year net loss of EUR 390 mln in 2008 was largely due to a devaluation of its investment portfolio and impairments reflecting deteriorating economic conditions and the downturn in real estate markets.
Troubled Central and Eastern European real estate group Orco said on Wednesday that its full-year net loss of EUR 390 mln in 2008 was largely due to a devaluation of its investment portfolio and impairments reflecting deteriorating economic conditions and the downturn in real estate markets.
In a statement on its unaudited results, Orco said it will drop its secondary stock exchange listings and eventually delist various subsidiaries to cut costs as it works to restructure in a bid to ensure the group continues as a 'going concern'. Jean-Francois Ott, founder and CEO of Orco, reportedly told Czech financial news website ihned.cz that the move 'should not concern Prague' where Orco has its main listing. He did not, however, specify the stock exchanges Orco may withdraw shares from.
Orco is a leading investor, developer and asset manager of property in Central and Eastern Europe. Under the company's current structure, Orco is registered in Luxembourg, managed from Paris, and listed on Euronext in Paris and on the Prague, Warsaw and Budapest Stock Exchanges.
Orco, which is operating under a French form of court protection from creditors, confirmed that it intends to divest several divisions, including its Russian developer Molcom, and its hospitality activities to become a 'new Orco'. The root-and-branch restructuring of the investor, developer and asset manager is necessarily, the company said, to ensure Orco continues as a 'going concern'.
