CEE and emerging markets property developer Plaza Centers has had its restructuring process approved by a Dutch court as well as 92% of its creditors.
CEE and emerging markets property developer Plaza Centers has had its restructuring process approved by a Dutch court as well as 92% of its creditors.
In a statement on Friday, the Amsterdam-registered company said that the approval will allow it to proceed with the proposed rights offering of shares to its existing shareholders to raise an aggregate amount of €20 mln in order to strengthen its equity position.
Plaza’s parent company, Elbit Imaging, has announced that it will subscribe to its pro-rata portion of the rights offering carried out at a price per share of €0.105.
Plaza, which was granted creditor protection by a local court in November last year, had to reach an agreement with creditors before April 17 to avoid a liquidation of its assets.
The firm asked to defer all principal payments of non-collateral backed debts for a total of €182 mln for three years, from 2013, 2014 and 2015 to 2016, 2017 and 2018. To help repay its debt, the company has also put a number of assets up for sale including its 40,000 m2 Torun Plaza in Poland and the 49,000 m2 Riga Plaza in Latvia.
Plaza was granted preliminary suspension of payment proceedings in November by the District Court of Amsterdam, just days after the London and Warsaw-listed property company suspended repayments to bondholders to stave off financial collapse.
In the six months ended June 30, 2014, Plaza saw its portfolio value drop to €519 mln from €586 mln at year-end 2013, primarily due to market-related impairment of €70 mln in the value of some of its trading properties.
It posted a loss of €99 mln in the first half of the year, versus a loss of €81 mln in H2 2013.
