LONDON (Alliance News) - Plaza Centers NV Thursday said that its amended Dutch restructuring plan has been approved, with 92% of creditors voting in favour of the plan.
In the initial debt restructuring plan, submitted to the Dutch Court in November last year, the plan was 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.
In a statement Thursday, the developer of shopping and entertainment centres said that the amended plan was approved Thursday, meaning bondholders will receive significantly improved terms, including - additional interest of 1.5% per annum, 13.21% of the shares in the company post its proposed rights issuance, certain covenants on operations, and an option for early repayments when any assets may be sold.
Plaza Centers said the approval of the plan supports its proposed right offering of shares to its existing shareholders to raise a total of EUR20 million, in order to further strengthen the company's equity position.
Plaza Centers shares were up 4.3% at 11.34 pence before midday Thursday.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Plaza (PLAZ)