Troubled Central European developer Orco has failed again to get bondholders' approval on a plan to restructure its debt. The Paris-based company, which has been under creditor protection since last March, had put forward a proposal to its bondholders to swap around EUR 400 mln of debt for stock.
Troubled Central European developer Orco has failed again to get bondholders' approval on a plan to restructure its debt. The Paris-based company, which has been under creditor protection since last March, had put forward a proposal to its bondholders to swap around EUR 400 mln of debt for stock.
Following bondholders' rejection last week, the company said it will ask the Paris Commercial Court for a 10-year extension for the EUR 450 mln of bonds maturing this year and in 2014.
Orco Property Group was forced back to the drawing board in September last year after bondholders rejected the company's first debt restructuring plan. The bondholders voted down an enhanced proposal regarding a debt-for-equity swap on 24 September.
Last month, the company's talks with Colony Capital about a EUR 80 mln equity injection collapsed after Orco failed to secure a refinancing agreement with its banks. Orco started negotiating with the US investment company last April. The restructuring of Orco's EUR 411 mln debt burden was a condition for Colony Capital to go ahead with the capital injection.
The developer, which has been under creditor protection since March, is seeking to sell a number of projects across CEE. These include Stein, a 88,000 m2 mixed-use development in Bratislava, Slovakia; Bubenska, a 26,500 m2 office and retail scheme in Prague's Holesovice district and the 37,000 m2 Cumberland Haus redevelopment in Berlin.
Operating in Central Europe since 1991, Orco is a public company, based in Luxembourg, and listed on the Euronext exchange in Paris and on the Prague, Warsaw and Budapest stock exchanges.
