Orco considers appeal of court decision to keep Leroi as 2010, 2013 and 2014 bond representative

By Jennifer Chiou

New York, Aug. 16 - Orco Property Group announced that it is mulling an appeal of a Luxembourg Tribunal d'arrondissement decision to reject the company's request that Luc Leroi be removed as representative of the holders of the company's bonds dated 2010 (ISIN: FR0010249599), 2013 (ISIN: FR0010333302) and 2014 (ISIN: XS0291838992 and XS029184062).

According to a company news release, the company claimed that Leroi infringed upon his contractual obligations and covenants under the signed agreement when he left Orco in February 2009.

Orco added that it considers there to have been clear conflict of interest and various irregularities and failures while Leroi was been on duty.

In response, Leroi challenged Orco's claim and its line of argument, and the court rejected the company's claim on July 15 because it "does not constitute a just cause requested by law," the release noted.

In general meetings on July 26, holders of the bond series confirmed Leroi as the bondholders' representative.

In April, Leroi attempted to convene holder meetings in order to vote on the creation of a fund dedicated to the defense of the bondholders, with a proposed total amount of €750,000.

As a result, Orco filed a request with the court to cancel Leroi's meetings and to further prohibit him from holding any meetings. This request was granted on April 20, but Leroi went ahead with the meeting on April 26.

At the end of 2008, when Leroi was still director and chief financial officer of Orco, the financial crisis led the company to request the opening of a French safeguard procedure before the Commercial Court of Paris.

It was on May 28, 2010 that Leroi, appointed as bondholder representative for the bonds in September 2009, filed a third-party opposition against the company's safeguard plan that cited the maximum bond liability to be reimbursed within the plan.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.