Mirland Development Corporation PLC Statement re: Bondholder announcements (0993V)
April 13 2016 - 08:43AM
UK Regulatory
TIDMMLD
RNS Number : 0993V
Mirland Development Corporation PLC
13 April 2016
13 April 2016
MirLand Development Corporation plc
("MirLand" or the "Company")
Statement re: Bondholder announcements
MirLand, one of Russia's leading residential and commercial
property developers, notes the series of announcements released on
the Tel Aviv Stock Exchange between 7 April 2016 and 11 April 2016
(the "Bondholder Announcements") by the trustees ("Trustees") of
the holders of the Company's Series A-F bonds (the "Bondholders")
which convened a meeting of the Bondholders ("Bondholder Meeting")
on 10 April 2016. The Company further notes that the Bondholder
Announcements contain details of certain proposals to be considered
at the Bondholder Meeting (the "Proposed New Restructuring Terms").
The Company understands that the Bondholders are due to vote on the
Proposed New Restructuring Terms on 14 April 2016.
The board of directors of the Company was not approached by the
Trustees to consider the Proposed New Restructuring Terms in
advance of the Bondholder Announcements. If and when the principles
of the Proposed New Restructuring Terms are approved by the
Bondholders and presented to the Company for their consideration,
the board of directors of the Company will review them and, if
necessary, seek further information and/or clarification.
The Proposed New Restructuring Terms set out in the Bondholder
Announcements are summarised as follows:
(a) approximately USD$180m of the debt owed to the Bondholders
will be converted into equity in the Company, leaving approximately
US$45m of outstanding bonds (the "Remaining Debt");
(b) Jerusalem Economic Ltd., Industrial Building Corporation
Ltd. and Darban Investments Ltd. (the "Controlling Shareholders")
will be asked to commit to providing funding of US$25m in aggregate
(including US$4m which has previously been provided to the Company)
in return for approximately a 40% interest in the Company's equity.
Of this US$25m, US$5m is to be paid to the Bondholders (excluding
the Controlling Shareholders and members of the Fishman family) pro
rata to their holdings of bonds in the Company;
(c) the Bondholders will have approximately a 60% interest in the Company's equity; and
(d) the Remaining Debt will remain unsecured and will be
restructured on the following basis: (1) repayment of the Remaining
Debt will commence in 2021 with three equal annual instalments, (2)
the Remaining Debt will bear an annual interest of 1% which will
start to be paid in December 2017, (3) the Company will have the
right to repay the Remaining Debt at any time and at its sole
discretion without incurring any fees or penalty, (4) there will be
no limitation or restriction on the Company raising any additional
secured debt and (5) events of default will only be in accordance
with Israeli securities law.
The Company will make further announcements in due course.
For further information, please visit
www.mirland-development.com or contact:
MirLand Development Corporation +7 495 787 49
plc 62
Roman Rozental +7 499 130 31
roman@mirland-development.com 09
FTI Consulting
Dido Laurimore / Tom Gough
/ Ellie Sweeney +44 20 7327 1000
Investec Bank plc
Jeremy Ellis / David Anderson +44 20 7597 4000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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