Business
Outcome of creditors meeting
Outcome of creditors meeting.
About this update from Plaza Centers N.v.
[{"type":"text","content":"\n \nRNS Number : 6189K Plaza Centers N.V. 26 June 2014 \n \n\n26 June 2014\nPlaza Centers N.V. (the \"Company\" or \"Plaza\")\n \nPLAZA RECEIVES HIGH LEVEL OF SUPPORT FOR DEBT RESTRUCTURING PLAN\n \nPlaza today announces that its amended Dutch restructuring plan (the \"Plan\"), filed with the Dutch Court on 27 May 2014, has been approved with 92% of creditors voting in favour of the Plan. \n \nHaving received the consent of substantially in excess of the required ordinary majority (50% + 1) of creditors, the Dutch Court has scheduled a hearing to confirm the Plan on 8 July 2014.\n \nThe initial debt restructuring plan was submitted to the Dutch Court on 18 November 2013 by the Company to secure the long-term viability and growth of the business and to enable the Company to preserve value for its creditors by giving it time to resolve its liquidity situation.\n \nIn approving the Plan today and so voting in favour of deferring the principal maturities for at least 3.5 years, bondholders will receive significantly improved terms, including additional interest of 1.5% p.a; 13.21% of the shares in the Company post its proposed rights issuance as detailed below; certain covenants on operations; and an option for early repayments when any assets may be sold.\n \nIn addition, approval of the Plan supports the Company's proposed rights offering of shares to its existing shareholders to raise an aggregate amount of EUR 20 million in order to further strengthen the Company's equity position. Plaza's shares will also be admitted to trading on the Tel Aviv Stock Exchange following such rights issuance.\n \nRan Shtarkman, President and Chief Executive Officer of Plaza Centers N.V., said: \n\"We are extremely pleased with the overwhelming support that we have received from creditors for our restructuring plan. Their approval clearly demonstrates the confidence that our bondholders and other creditors have in the underlying fundamentals of our business and the potential for a return to growth. Clearly such significant support represents the fairness of the plan we have proposed.\n \n\"We would like to thank the bondholders' trustees, institutional investors and other creditors for a smooth, transparent and fruitful dialogue which has supported the Plan and enabled us to secure its approval in litt...