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7 Mar 2011 11:27
7 March 2011
Speymill Deutsche Immobilien Company plc
("SDIC" or "the Company")
Update of Activities
Speymill Deutsche Immobilien Company plc (AIM: SDIC), the pan-German residential property investment company listed on AIM, announces that it has reached an agreement with Citigroup Global Markets Limited ("Citigroup") under which Citigroup, as the advisor to an investment consortium which includes FFIRE Immobilienverwaltung AG, shall endeavour to put in place a permanent solution to the issues confronting the Company's existing debt and capital structure ("Restructuring"). The intended Restructuring is supported by a heads of terms between the Company and the consortium, and will have the aim of maximising value to both creditors and shareholders alike.
It is anticipated that any such Restructuring will not be completed in the short term due to the necessity of negotiating with the lending banks and therefore the Company will not be in a position to release its results for the six months to 31 December 2010 (the "Interim Results") before 31 March 2011 as required under Rule 18 of the AIM Rules for Companies. As a result, until such time as the Company's financial position is resolved and it publishes its Interim Results, trading in the Company's shares remains suspended.
Chairman of the Company, Jim Mellon, said, "We are encouraged that a solution to the issues that have confronted our Company appears closer. Such a solution, engineered by one of the world's largest banks, should provide all stakeholders with upside and restore value to shareholders."
The Company will notify the market of further developments as they arise.
The board of SDIC is no longer in discussions with any party regarding proposals which may result in an offer subject to the City Code on Takeovers and Mergers (the "Takeover Code") being made for the Company and, therefore, the Company is no longer considered to be in an offer period, as defined by the Takeover Code.
For more information, please visit http://www.speymilldeutsche.com or contact:
SMP Partners Limited | +44 1624 682 216 |
(Administrator) | |
Vincent Campbell | |
Smith & Williamson Corporate Finance Limited | +44 20 7131 4000 |
(Nominated Adviser) | |
Azhic Basirov | |
Siobhan Sergeant | |
Fairfax I.S. PLC | +44 20 7598 5368 |
(Brokers) | |
James King | |
Gillian McCarthy | |
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