Emerging Europe holders vote to lift loan amounts, extend maturities

By Susanna Moon

Chicago, Feb. 28 - Emerging Europe Land Development AS said holders approved changes to its 15% callable bond issue 2013/2014 and 25% callable bond issue 2012/2014 at a meeting held Friday.

Holders voted by 97.55% to extend the 25% bonds until June 30, 2014 and by 94.27% to increase the loan amount, according to a notice from bond trustee Norsk Tillitsmann ASA.

The issuer withdrew the proposal to cut interest rates to 15% from 25% during the meeting.

As for the 15% bonds, holders of 98.59% of the bonds voted to extend the maturity until June 30, 2014 and 98.12% voted to increase the loan amount.

There were enough holders to form a quorum for each series of notes, the trustee noted.

As announced on Feb. 14, the company asked bondholders to increase the total amount of the 15% bond issue to NOK 96 million from NOK 70 million and extend the maturity date to March 1, 2017 from March 3, 2014.

Also, Emerging Europe sought to reduce the interest rate on the 25% bonds to 15% and extend the maturity date on those bonds to March 1, 2017.

Emerging Europe said it lacked the funds to repay the bonds on the current March 3 maturity date, noting the opening of its commercial shopping center Lumini.

The company also said the 25% interest rate is a "significant amount" for it.

The requested increase would allow the company to issue additional tranches to fund the continued development of the shopping center and Emerging Europe in general, the company previously said.

Emerging Europe is a property investment and real estate management services company based in Oslo.

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