Troubled CEE developer Orco Property Group faces a crucial meeting at the Commercial Court of Paris on Thursday as bondholders are asked to back the company's restructuring plan. Orco was granted protection from its creditors by the Paris court last March, and earlier this month the firm proposed that the creditors exchange their bonds worth EUR 411 mln for a mix of new bonds due in 2017 and bonds that may be converted at a later date into shares.
Troubled CEE developer Orco Property Group faces a crucial meeting at the Commercial Court of Paris on Thursday as bondholders are asked to back the company's restructuring plan. Orco was granted protection from its creditors by the Paris court last March, and earlier this month the firm proposed that the creditors exchange their bonds worth EUR 411 mln for a mix of new bonds due in 2017 and bonds that may be converted at a later date into shares.
On Wednesday Orco unveiled a revised plan with improved conditions for the restructuring of the existing bonds. The changes include an increase in the aggregate principal amount of new convertible bonds from EUR 120 to EUR 150 mln and a reduction of the maturity of the new bonds by one year to 20 November 2016. The conversion price has been lowered from EUR 15 to EUR 13.
