Plaza Centers N.V. RESTRUCTURING PLAN EARLY PREPAYMENT AMENDMENT (5208O)
November 07 2016 - 10:30AM
UK Regulatory
TIDMPLAZ
RNS Number : 5208O
Plaza Centers N.V.
07 November 2016
7 November 2016
Plaza Centers N.V. (the "Company" or "Plaza")
PROPOSED AMENDMENT TO AN EARLY PREPAYMENT TERM UNDER THE
RESTRUCTURING PLAN
As previously announced, Plaza is implementing a restructuring
plan that was approved by the Dutch court on 9 July 2014 (the
"Restructuring Plan").
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 the Company
does not prepay an aggregate amount of at least NIS 434,000,000
(circa EUR103 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, the Company has
made Early Prepayments of an aggregate amount of approximately NIS
142.5 million (circa EUR34 million) and has repaid a total amount
of circa EUR71 million in respect of the principal amount, together
with interest (on top of the issuance to the bondholders of 13.21%
of its outstanding share capital). At the same time, the Company
continues to implement an aggressive cost cutting plan in order to
reduce its general and administrative expenses, which have
decreased by approximately 20% over the period.
The Company is currently in active negotiations on several
disposal transactions with a total negotiated value of circa EUR140
million (with an estimated EUR71 million of 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 a few months of 1
December 2016.
The enforcement of the Accelerated Repayment Schedule would add
significant pressure to the Company'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
the Company's stakeholders, including its shareholders and
creditors.
Accordingly, the Company 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, the Company 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 12% on the
original amount) (the "Requested Amendment"). Apart from this
Requested Amendment, the Company intends to otherwise fully comply
with the repayment schedule of the notes. Plaza proposes 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 and generating
value 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. A further update will be provided
in due course.
For further details, please contact:
Plaza
Dori Keren, Acting CEO +48 22 231 99 00
FTI Consulting
Dido Laurimore / Claire Turvey / Tom Gough +44 20 3727 1000
Notes to Editors
Plaza Centers N.V. (www.plazacenters.com) is an emerging markets
developer of shopping and entertainment centres. It focuses on
constructing new centres and, where there is significant
redevelopment potential, redeveloping existing centres in both
capital cities and important regional centres. The Company is
listed on the Main Board of the London Stock Exchange, as of 19
October 2007, on the Warsaw Stock Exchange (LSE:"PLAZ", WSE:
"PLZ/PLAZACNTR") and, on the Tel Aviv Stock Exchange. Plaza Centers
N.V. is an indirect subsidiary of Elbit Imaging Ltd. ("EI"), an
Israeli public company whose shares are traded on both the Tel Aviv
Stock Exchange in Israel and on the NASDAQ Global Market in the
United States. Plaza Centers has been active in real estate
development in emerging markets for over 20 years.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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