LONDON (Alliance News) - Clear Leisure PLC Tuesday said it had raised new funds by placing bonds with a Swiss-based investor at a discount, and is considering raising further funds in a similar manner as it increases its stake in Mediapolis, and it is also hopeful it can publish its delayed accounts in December.
The investor in the leisure and real estate sectors, mainly in Italy, said it raised EUR411,750 by placing EUR450,000 of its 0% December 2015 bond with the Swiss-based investor at 91.5% of the value of the bond.
It said that enabled it to participate in the first part of a two part fundraising by Mediapolis, giving it the working capital for the professional fees involved in separating its license assets from its land assets. Clear Leisure invested EUR200,000 initially and expects to make a further subscription of about EUR180,000. That would take its Mediapolis stake to about 88%, from 69.5%.
"As a result of the uptake of the bond, the company is considering raising further funds in a similar manner, which would be used for the further increase in capital in Mediapolis and for working capital purposes," it said.
Clear Leisure also said it is continuing to negotiate the terms of the possible acquisition of the real estate assets of the Ondaland waterpark, and will keep the market appraised of further developments.
The company's shares have been suspended since June after it had to delay the publication of its 2013 results.
It said Tuesday that it has now completed the audit of its Italian assets after regaining access to the necessary financial information. It has passed the information to its UK auditor and expects the UK audit to take about four weeks to conclude. It therefore expects to release its 2013 results and results for the first half of 2014 in the first week of December.
The company's Mediapolis unit is trying to restructure its debt. In November last year, the company got two bids for its stake in Mediapolis, but the proposed deals were complicated by Mediapolis's debt structure, and in mid-January it applied to a tribunal in Italy for clearance of a debt restructuring proposal. The proposal was rejected in May on the grounds that it was uncertain a construction permit would be received in accordance with the plan.
In August, Clear Leisure said it had a letter from the Regione Piemonte confirming the rights of the building licence as well as the commercial rights owned by Mediapolis, and confirming the region's full administrative support to provide all the necessary documentation within the next 18 months.
Mediapolis is a 670,000 square metre tract of real estate which has been approved for the development of a major theme park, hotel, shopping complex and commercial activities.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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