REO in restructuring negotiations, to miss Aug. 31 loan stock payment

By Caroline Salls

Pittsburgh, Aug. 26 - Real Estate Opportunities plc is in financial restructuring negotiations with holders of series A and series B loan notes, NAMA, Lloyds Banking Group and an informal committee of the larger holders of its 7.5% convertible unsecured loan stock and zero dividend preference shares issued by wholly owned subsidiary REO Securities Ltd., according to a company news release.

As a result of the status of the negotiations, the company said it will not make an Aug. 31 payment on the convertible unsecured loan stock.

REO said significant progress has been made toward reaching a restructuring agreement with the informal committee. This potential agreement is now being discussed with REO's other lenders.

According to the release, the committee, REO's directors and Treasury Holdings, which supports the restructuring proposal, account for £59.4 million of convertible loan stock, representing 59% of the total amount, and for 32.9 million ZDPs, representing 57% of the total number issued.

REO is a United Kingdom real estate investment and development company.

© 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.