26 Oct 2012 08:58
26 October 2012
Treveria PLC (TRV) ("Treveria" or the "Company")
Update re Debt Facilities, Cash Balances, and RETT
Silo E (ABN Amro; valuation €477 million; loan €390 million; securitised)
Further to the announcement made on 15 October 2012, the Board of Treveria announces that the German Silo E companies have filed for insolvency, seeking to comply with local law and to preserve the value of the Silo E property portfolio for creditors and stakeholders.
The Company is disappointed by the decision taken unilaterally on 15 October 2012 by Hatfield Philips International ("Hatfield Philips"), representing the Silo E Lenders, not to extend the standstill period on Silo E and to demand immediate payment of all secured obligations. Treveria E had been working closely with its legal advisers to formulate an amicable proposal that it believed was in the best interests of all Silo E stakeholders. It is the view of Treveria that the actions taken by Hatfield Philips will lead to significant value erosion due to the anticipated costs of enforcement of such actions and the disruption to implementation of the Silo E business plan.
The actions taken by Hatfield Philips come in spite of material progress made in the sales programme. Treveria E was in the process of concluding negotiations on the sale of two Silo E properties at valuations above carrying value and representing in aggregate more than 25% of the outstanding debt balance. Because of Hatfield Philip's actions, Treveria E has been forced to stop negotiations with the potential buyers of these and other Silo E assets for the time being. This has resulted in corresponding uncertainty on the timing and completion of these sales. Negotiations with potential tenants have also become extremely difficult. Furthermore, Treveria notes that the Silo E companies had continued to pay contractual interest and amortization comfortably with an ICR above 2.70x at the last 15 October 2012 IPD.
While Treveria remains open to an amicable solution, as the Company believes it is in the best interest of creditors and other stakeholders, Treveria will continue to consider all available options to protect the interests of its shareholders while recognizing the requirements of its creditors.
Silo D (Deutsche Bank/Citigroup; valuation €254 million; loan €204 million; securitized)
On 20 July 2012, Treveria D announced that it had entered into a standstill agreement with the Servicer of the notes issued by DECO 10 - Pan Europe 4 p.l.c. and DECO- PE4 Swiss AG ("Notes") (the Lenders") to facilitate discussions regarding its Silo D securitized debt facility. The current standstill expires on 31 October 2012 and we continue to work on an extension to this agreement.
Conversations and negotiations are on-going in relation to the possibility of an amicable settlement and we are hopeful of a quick resolution. Treveria also notes the Special Notice released on 6 September 2012 by the Servicer to Note holders in this regard.
Silo F/K (Hypotheken Bank, formerly Eurohypo; valuation €511 million; loan €411 million; sole lender)
On 22 October 2012, Hypotheken Bank confirmed an additional 1-month extension of the existing standstill agreement until 30 November 2012 to allow for the continuation of the constructive discussions between the parties with a goal to achieve a consensual and most optimal solution for all stakeholders.
Silo G (JP Morgan; valuation €64 million; loan €27 million; syndicated loan)
Treveria G has received cash proceeds of €16.1 million as a result of completed sales in the year to date, and in accordance with the loan agreement, part of these cash proceeds has been used to pay down the loan to €27 million.
Further, Treveria G has notarised additional sales that will represent gross sales proceeds of €38.1 million at levels that are in line with 30 June 2012 valuations.
Treveria G is working on the sale of the remaining properties over time and Silo G Lenders have agreed in-principle (but subject to credit committee approval and final documentation) on an extension of the loan to give sufficient time for repayment in full.
Silo J (properties free of any mortgage or charge; valuation €4 million)
Treveria continues to work on the portfolio with a view to implementing an orderly liquidation of these assets.
Cash Position
As of 19 October 2012, cash balances within the Group totaled €51.5million, of which €32.4 million is held at Treveria PLC.
German Real Estate Transfer Tax (RETT)
There is no further update to the RETT position as disclosed within Treveria's half yearly report for the six months ended 30 June 2012.
Treveria also announces that it has received a number of unsolicited indications of interest from third parties with regard to the potential acquisition of some or all of Treveria's portfolio. The Board will continue to explore these approaches as well as considering all other opportunities that are in the Company's and its stakeholders' best interests.
For further information, please contact:
IOMA Fund and Investment Management Limited
Graham Smith +44 (0) 1624 681250
Singer Capital Markets Ltd
James Maxwell/Nick Donovan +44 (0) 20 3205 7500