Orco Property Group's safeguard plan approved, observation period over

By Caroline Salls

Pittsburgh, May 19 - Orco Property Group SA's safeguard plan has been approved by the Commercial Court of Paris, putting an end to the observation period that began on March 25, 2009, according to a company news release.

As previously reported, Orco's board of directors chose to open a safeguard procedure in order to accelerate the company's financial restructuring.

The company's financial troubles stemmed from a difficult real estate market and credit conditions.

The plan includes the repayment of 100% of the company's admitted claims over 10 years.

According to the release, the safeguard plan's implementation and the related debt rescheduling will allow Orco to reinvest in real estate projects to re-establish a value creating cycle that was otherwise frozen by the financial crisis.

At the same time, the company said it will continue to consolidate and refocus its activities.

"We are very pleased with the Commercial Court of Paris's decision that enables us to confront the future with confidence," Orco president and founder Jean-François Ott said in the release.

"For more than a year, the [safeguard] procedure provided us with the time to restore the financial health of the group.

In turn, this newly approved recovery plan provides us with the opportunity to very quickly relaunch projects in Central Europe."

Orco Property Group is a Central European developer and asset management company based in Luxembourg.

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