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LONDON (Alliance News) - Plaza Centers NV Monday said the administrator appointed by the Dutch court is no longer in office and its management has resumed full control of the business after its rescue plan to stem the flow of mounting losses and a worsening cash position was approved earlier this month.
Plaza was beset by a number of problems throughout 2013 including a EUR186 million impairment of trading properties, equity accounted investees, investment property and pre-payments compared with just EUR83.7 million a year earlier. In addition, net finance costs more than doubled to EUR39.3 million from EUR17.2 million in 2012.
Plaza Centers was hit hard by the economic downturn, a corresponding lack of transactions in property investment markets and a lack of traditional bank financing. It raised about EUR61 million by selling five assets in 2013, refinancing debt on some properties and has tried to maximise its returns from its remaining assets, it said.
However, this hasn't come quick enough to allow it to meet upcoming bond obligations, including a EUR15 million payment that was due to Polish bondholders in November and a EUR17 million payment due to Israeli bondholders in December.
The restructuring plan, approved by the Dutch court, aims to secure the long-term viability and growth of the business and to enable the company to preserve value for its creditors by giving it time to resolve its liquidity situation.
Plaza said Monday that as a consequence of the court's decision, the suspension of payment proceedings, which started in November 2013, has now come to an end and the company has successfully emerged from the reorganisation proceedings.
Plaza Centers shares were quoted up 2.6% at 11.80 pence Monday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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