Elbit Imaging Announces Amendment to the 2014 Restructuring Plan of Its Subsidiary, Plaza Centers
November 07 2016 - 10:29AM
Elbit Imaging Ltd. (“EI” or the
“Company”) (TASE:EMITF) (NASDAQ:EMITF) announced
today, in further to its announcement dated on July 21, 2014,
regarding the restructuring plan approval of
Plaza Centers
N.V. ("Plaza") (LSE:PLAZ), an indirect subsidiary (45%) of
the Company, the following updates:
- Under the Restructuring Plan, principal payments under the
notes (both those that are traded on the Tel Aviv Stock Exchange
and those held by Polish investors) issued by Plaza and originally
due in the years 2013 to 2015 were deferred for a period of four
and a half years, and principal payments originally due in 2016 and
2017 were deferred for a period of one year (the “Extended
Repayment Schedule”).
- The Restructuring Plan further provides that, if Plaza does not
prepay an aggregate amount of at least NIS 434,000,000
(approximately €103 million) on the principal of the notes on or
before 1 December 2016 (the “Early Prepayment”),
the principal payments due under the Extended Repayment Schedule
will be advanced by one year (the “Accelerated Repayment
Schedule”).
- Since the Restructuring Plan became effective, Plaza has made
Early Prepayments of an aggregate amount of approximately NIS 142.5
million (approximately €34 million) and has repaid a total amount
of approximately €71 million on account of principal and interest
(on top of the issuance to the bondholders of 13.21% of its
outstanding share capital). At the same time, Plaza continues to
implement an aggressive cost cutting plan in order to reduce its
general and administrative expenses (such expenses were reduced by
approximately 20% over the mentioned period).
- Plaza is currently in active negotiations on several disposal
transactions with a total negotiated value of approximately €140
million (with an estimated €71 million expected net proceeds to the
Company) and, although there is no certainty that the transactions
will be completed, it is expected that the closing of these
transactions will take place within few months after 1 December
2016.
- The enforcement of the Accelerated Repayment Schedule would add
significant pressure to Plaza’s liquidity and result in an
acceleration of the asset sales, which is likely to have an adverse
impact upon the value achieved on any disposals. The Accelerated
Repayment Schedule may, therefore, adversely affect the position of
Plaza’s stakeholders, including its shareholders and
creditors.
- Accordingly, Plaza has a strong preference to continue
operating on the basis of the Extended Repayment Schedule. In order
to ensure that the Extended Repayment Schedule remains applicable,
in the event that the closing of the aforementioned transactions
takes longer than anticipated, Plaza is proposing to seek, from its
bondholders, a relaxation of the terms of the Early Prepayment
required to maintain the Extended Repayment Schedule.
- The proposed amendments sought by Plaza comprise the
postponement of the Early Prepayment date by up to four (4) months,
and the reduction of the total amount of the required Early
Prepayments to at least NIS 382,000,000 (a reduction of up to 12%
from the original amount) (the “Requested
Amendment”). Apart from this Requested Amendment, Plaza
intends to fully comply with the repayment schedule of the notes.
Plaza intends to implement the Requested Amendment through a
consensual process with its bondholders and will shortly be
initiating discussions with its bondholders in order to seek their
consent to the Requested Amendment.
- Plaza has made considerable progress in creating value and
generating proceeds from its assets and appreciates the continued
support of its stakeholders in order to be able to continue the
implementation of the approved Restructuring Plan.
The Company will update regarding any new
developments.
About Elbit Imaging Ltd.
Elbit Imaging Ltd. operates in the following
principal fields of business: (i) Commercial centers - initiation,
construction, and sale of commercial centers and other mixed-use
property projects, predominantly in the retail sector, located in
Central and Eastern Europe. In certain circumstances and depending
on market conditions, the Group operates and manages commercial
centers prior to their sale. (ii) Hotel - operation and
management of the Radisson hotel Complex in Bucharest, Romania.
(iii) Medical industries and devices - (a) research and
development, production and marketing of magnetic resonance imaging
guided focused ultrasound treatment equipment, and (b) development
of stem cell population expansion technologies and stem cell
therapy products for transplantation and regenerative medicine.
(iv) Plots in India - plots designated for sale initially
designated to residential projects.
Any forward-looking statements in our releases
include statements regarding the intent, belief or current
expectations of Elbit Imaging Ltd. and our management about our
business, financial condition, results of operations, and its
relationship with its employees and the condition of our
properties. Words such as “believe,” “expect,” “intend,” “estimate”
and similar expressions are intended to identify forward-looking
statements but are not the exclusive means of identifying such
statements. Actual results may differ materially from those
projected, expressed or implied in the forward-looking statements
as a result of various factors including, without limitation, a
change in market conditions, a decision to deploy the cash for
other business opportunities and the factors set forth in our
filings with the Securities and Exchange Commission including,
without limitation, Item 3.D of our annual report on Form 20-F for
the fiscal year ended December 31, 2015, under the caption “Risk
Factors.” Any forward-looking statements contained in our releases
speak only as of the date of such release, and we caution existing
and prospective investors not to place undue reliance on such
statements. Such forward-looking statements do not purport to be
predictions of future events or circumstances, and therefore, there
can be no assurance that any forward-looking statement contained in
our releases will prove to be accurate. We undertake no obligation
to update or revise any forward-looking statements.
For Further Information:
Company Contact
Ron Hadassi
Chairman of the Board of Directors
Tel: +972-3-608-6048
Fax: +972-3-608-6050
ron@elbitimaging.com
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