Orco Property Group, bondholder group sign restructuring term sheet

By Caroline Salls

Pittsburgh, April 13 - Orco Property Group, SA has signed a binding term sheet with an informal committee of bondholders for the restructuring of the five tranches of Orco bonds totaling €411 million in principal amount and €549 million in total repayments due under the company's safeguard plan, according to a news release.

The bondholders' committee represents roughly one-third of the total principal amount of the bonds.

Under the binding term sheet, the ratio for the exchange of Orco bonds for new Orco shares will be defined in relation to the allocation of the €549 million repayments to each tranche.

The total repayments due under the safeguard plan were allocated by the Commercial Court of Paris as follows:

• €63.2 million for the €50.27 million total principal amount of Obsar 1 bonds;

• €16.0 million for the CZK 300 million outstanding principal amount of Czech bonds;

• €28.9 million for the €24.17 million total principal amount of bonds exchangeable for Suncani Hvar shares;

• €212.3 million for the €150 million total principal amount of convertible bonds issued; and

• €228.1 million for the €175 million total principal amount of Obsar 2 bonds.

As previously reported, the bondholders will vote on the restructuring on April 27.

Orco Property Group is a Central European developer and asset management company based in Luxembourg. Orco Germany is a real estate company based in Berlin.

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