Russian Real Estate composition proposal accepted at creditor meeting

By Caroline Salls

Pittsburgh, March 26 - Russian Real Estate Investment Co. AB (Ruric)'s composition proposal was accepted at a creditor's meeting at the district court of Stockholm, according to a company news release.

Based on the preliminary votes count, 77% of the number of creditors and 84% of the total claim was represented on the creditors meeting, and the composition proposal was accepted by all present creditors.

Specifically, creditors representing about 75% of the total claim have chosen to accept alternative number one in the composition proposal, under which 5% of the claim will be repaid in cash, 28.5% will be converted into new series B shares at an issue price of 6 SEK, and 66.5% will be settled in the form of a new bond.

Creditors that did not vote or that chose alternative number two will receive a cash payment equal to 55% of their claim.

Ruric said the final vote count will be determined on April 1, and the district court's ruling is expected to be issued on April 6.

The company's board of directors plans to hold an extraordinary shareholders meeting during the next week to seek approval of a resolution on an off-set share issue and to resolve the guaranteed issue of series B shares.

Ruric acquires, develops, manages and divests real estate assets in the Russian property market and in St. Petersburg in particular. The company is based in Stockholm.

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