R.E.A.Hldgs PLC
04 May 2004
R.E.A. HOLDINGS PLC
Completion of Debt Restructuring
R.E.A. Holdings plc ('REA') announces that the REA group has completed the
restructuring of its Indonesian indebtedness.
The restructuring process had already been substantially completed on 22 April
2004 when REA issued the preliminary announcement of its 2003 results and stated
in that announcement that REA's subsidiary, PT REA Kaltim Plantations ('REA
Kaltim'), had arranged new loan funding from an Indonesian bank with which to
complete the restructuring of REA Kaltim's bank debt.
The new loan funding (the 'new loan') has now been drawn down. The new loan is
in the aggregate amount of $11 million divided into two tranches, tranche I of
which (in the amount of $8 million) is guaranteed by REA and tranche II of which
(in the amount of $3 million) is secured by a collateral cash deposit of $3
million provided by the REA group. The new loan has been applied by REA Kaltim
in repaying the $11 million owed by REA Kaltim to Commerzbank (South East Asia)
Limited ('Commerzbank'), thus releasing the security provided by REA Kaltim to
Commerzbank to be available to provide further security for the new loan (to the
effect that the new loan is a novation of the former Commerzbank loan, on
restructured terms). The repayment of the Commerzbank loan has resulted in the
release to the REA group of a cash participation of $5.5 million held by the
group in the former Commerzbank loan ($3 million of which has been applied to
fund the cash deposit referred to above).
Concurrently with the draw down of the new loan, REA Kaltim repaid (together
with accrued current interest) a loan of $8.175 million owed to interests
associated with Mr M E Zukerman ('Zukerman interests').
Whilst this does not resolve the outstanding litigation brought in New York
against REA and two of its directors by the Zukerman interests, it does
discharge the only liabilities to the Zukerman interests that the REA group
acknowledges as currently due and payable. Certain acknowledged prospective
liabilities to the Zukerman interests, totalling some $2.8 million (for which
the REA group has made full provision), remain outstanding. Those liabilities
will not crystallise unless necessary consents from lenders to REA Kaltim are
obtained and, in that event, will be payable on deferred terms.
This information is provided by RNS
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