6 Jan 2010 13:13
Engel East Europe N.V.
Trading Update
6 January 2010 - Engel East Europe N.V. ('Engel' or 'the Company'), the AIM-listed Central and Eastern European property developer (EEE:L), today announces that it has been informed that a petition has been made to the courts in Hungary for the winding up of Engel Projekt Kft., the company that owns the Gyor project, due to unpaid debts arising from a court judgment given in favor of a contractor of the Gyor project. As of today, the sum of the outstanding debt amounts to approximately €1 million. Arces International B.V, a joint venture, in which the Company has 50% shareholding, has signed a bank guarantee in respect of a bank loan received by Engel Projekt Kft. for a total of approximately €11.5 million.
In addition, the Company announces that it has entered into agreements for the sale of two of its projects and the management company in Sofia, Bulgaria, for a total consideration of €25,000. The effect on the Company's financial statements is a loss of approximately €0.4 million, and a reduction in bank debt of €1.3 million. The disposal is in line with the Company's policy of reducing debt and focusing its residential development activities on core geographical areas, being Poland and the Czech Republic.
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Enquiries:
| Engel East Europe N.V. | |
| Samuel Hibel | Tel: +972 (9) 970 7004 |
| Libertas Capital Corporate Finance Limited | Tel: +44 (0) 20 7569 9650 |
| Sandy Jamieson | |
| Bankside Consultants | Tel: +44 (0) 20 7367 8888 |
| Simon Bloomfield or Andy Harris |