CEE and emerging markets property developer Plaza Centers has been granted creditor protection by an Amsterdam court to give it breathing space to implement a restructuring plan.

CEE and emerging markets property developer Plaza Centers has been granted creditor protection by an Amsterdam court to give it breathing space to implement a restructuring plan.

The District Court of Amsterdam granted Plaza's application on Monday 18 November for preliminary suspension of payment proceedings and the appointment of a administrator to assist in the running of the company, as well as a supervisory judge to monitor the case.

Plaza was able to file in Amsterdam as it is registered in the Netherlands under the naamloze vennootschap (N.V. or anonymous venture) company structure.

Under Dutch reorganisation proceedings, the court appoints an administrator to manage the affairs of the company together with existing management, payment to ordinary unsecured creditors is suspended and the company has the ability to restructure its debts during the moratorium with the majority consent of its creditors. Throughout the restructuring process the company endeavours to carry out its business activities as normal.

Plaza said that it intends to continue its business activities as normal throughout the restructuring process as Plaza's management team run the company alongside the administrator.

The restructuring plan filed with the court proposes a deferral of the company’s obligations for a period of three to four years, or shorter if cash flow permits, without requiring the bondholders to take a loss on the par value of their investments. During the restructuring process creditors are subject to a moratorium.

Plaza is to approach its creditors in the coming weeks to seek approval for the restructuring plan.

The court ruled that the creditors meeting needed to vote on the plan will take place on 17 April 2014 at the court in Amsterdam and that creditors can file their claims for voting purposes with the administrator before 3 April 2014.

The move comes days after the London and Warsaw-listed property company suspended repayments to bondholders to stave off financial collapse.

Plaza said in a statement: 'Notwithstanding its immediate challenges, the company continues to have a strong balance sheet, with a positive current net asset value, and owns assets and development opportunities that offer the potential to deliver positive returns over the medium to long term.

'Accordingly, Plaza believes that, on a going concern basis, the company retains significant value for its stakeholders and will be able to repay its creditors in full. By contrast, the board is certain that a forced liquidation would cause shareholders and creditors to incur significant losses.'

Plaza said that it expects that the restructuring process will be completed within a period of six months.

Plaza is providing further information on the current situation, the content of the restructuring plan and the further process via this link.

Separately on Sunday, it was announced that a fund managed by US private equity firm Lone Star has acquired a big stake in GTC, another property developer active in Central and Eastern Europe. The 27.75% stake was sold by GTC's owner, Kardan, as both Kardan and GTC are facing liquidity problems.