CEE-focused Orco Property Group (OPG) and its subsidiary Orco Germany (OG) have reached debt-restructuring agreements with bondholders. They entered into an agreement in mid April with bondholders representing a third of OPG's bonds and 61% of Orco Germany's bonds in terms of nominal value.
CEE-focused Orco Property Group (OPG) and its subsidiary Orco Germany (OG) have reached debt-restructuring agreements with bondholders. They entered into an agreement in mid April with bondholders representing a third of OPG's bonds and 61% of Orco Germany's bonds in terms of nominal value.
Under the deal, some 90% of the OPG bonds will be converted into 65 million OPG shares and the remaining OPG bonds can be exchanged for EUR 55.2 mln in newly issued OPG bonds.
In addition, 85% of the OG bonds will be converted into approximately 26.2 million OPG shares and the remaining OG bonds can be exchanged for EUR 20 mln in new notes.
The implementation of the joint agreement is subject to finalisation of certain OG transaction documents by 24 April and the approval at a minimum of the OPG bondholder general assemblies for the 2010, 2013 and 2014 bonds.
Separately, GSG Asset, a subsidiary of Orco Germany, and the Royal bank of Scotland have signed a stand-still agreement which defers payment obligations for the EUR 299 mln GSG loan from 16 April to 15 June following a two tranche special redemption payment.
