The restructuring of Park Street Nordicom A/S is making progress.
As outlined at the Annual General Meeting and the Annual report, the steps in the restructuring plan include:
- Renegotiation of financing terms with all key financial creditors
- Completion of merging subsidiary entities into Park Street Nordicom A/S
- Recapitalisation – involving debt conversion and capital injection.
We have now received finalised term sheets for refinancing and restructuring of existing facilities into long term debt from all key financial creditors. The terms are still subject to final internal credit committee approval of the respective key creditors. This creditor group represents 81% of the existing debt. As stated in the 2016 Annual Report, 14% of the total financial debt was renegotiated in Q1 2017. There remain some uncertainties with creditors representing 5% of the debt where discussions are ongoing and with respect to the final internal credit committee approvals of the key creditors.
The result of the negotiations is in line with the EBVAT expectations for 2017 outlined in the 2016 Annual Report and the expected timeline for concluding the restructuring.
Statement from CEO Pradeep Pattem: “Restructuring of the existing financial debt remains one of the key barriers to getting the company on path to become a sustainable real estate company. While the current agreement is an important milestone, we need to now focus on several significant steps in implementing the restructuring terms and operational changes required to create value with the company’s existing property portfolio and identify future investment opportunities. We highly appreciate the effort and commitment shared by our key financial creditors and hope to conclude the discussions in the same spirit with the remaining creditors.”
Andrew La Trobe Pradeep Pattem
Chairman CEO