18 November 2013
PLAZA CENTERS N.V.
THIRD QUARTER INTERIM MANAGEMENT STATEMENT
- CONTINUED PROGRESS at ACTIVEly managed ASSETS
AND WITH REalisation of NON CORE ASSEts to reduce LEVERAGE -
Plaza Centers N.V. ("Plaza" / "Company" / "Group"), a leading emerging markets property developer, today announces its interim management statement relating to the period from 1 July 2013 to 30 September 2013 ("the Period") and includes an update to the date of the publication of this statement.
· Liquidity situation update: Further to the announcement on 14 November 2013, Plaza has today announced that it has filed for reorganization proceedings (surseance van betaling) with the District Court of Amsterdam in the Netherlands (the "Court") and submitted a restructuring plan to the Court. Pursuant to Dutch reorganization proceedings, the Court appoints an administrator to manage the affairs of the Company together with existing management; ordinary unsecured creditors become subject to a stay; and the Company has the ability to restructure its debts during the moratorium with the majority consent of its creditors. Throughout the restructuring process, the Company intends to continue its business activities as normal.
The Company's auditors have informed the Company that the review report of the Company's Financial Statements as of 30 September 2013 will draw attention to the uncertainty about the Company's ability to continue as a going concern.
For further information on the current situation, the content of the restructuring plan and the further process, please visit: http://www.plazacenters.com/index.php?p=debt_restructuring .
Ran Shtarkman, President and Chief Executive Officer of Plaza Centers N.V., said:
"We have continued to make good progress at the operational level of the business, illustrated by increases against all of our three key performance metrics of occupancy, footfall and turnover during the Period, with the most notable improvements continuing to be seen at our assets in the more resilient economies in CEE.
However, the persistent uncertainty in the economic and consumer environment across Europe has constrained our ability to deleverage and reallocate capital realised from the disposal of stabilised completed projects and non-core assets to the core yielding assets across our portfolio. As such, and as announced after the Period end, we have taken the decision to withhold payment on the upcoming maturities of the bonds and approach creditors with a restructuring plan. We believe this decision is in the best long term interest of our shareholders and bondholders to protect the continuity of the business and are confident that, on the implementation of the plan, we will be able to repay our creditors in full and return to generating significant value for our shareholders going forward."
For further details please contact:
Plaza Ran Shtarkman, President and CEO Roy Linden, CFO |
+36 1 462 7221 +36 1 462 7222 |
FTI Consulting Stephanie Highett / Nina Legge |
+44 20 7831 3113 |
Forward-looking statements
This press release may contain forward-looking statements with respect to Plaza Centers N.V. future (financial) performance and position. Such statements are based on current expectations, estimates and projections of Plaza Centers N.V. and information currently available to the company. Plaza Centers N.V. cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. Plaza Centers N.V. has no obligation to update the statements contained in this press release, unless required by law.
About Plaza Centers
Plaza Centers N.V. (www.plazacenters.com) is a leading emerging markets developer of shopping and entertainment centres with operations in Central and Eastern Europe and India. It focuses on constructing new centres and, where there is significant redevelopment potential, redeveloping existing centres in both capital cities and important regional centres. The Company is dual listed on the Main Board of the London Stock Exchange and, as of 19 October 2007, the Warsaw Stock Exchange (LSE:"PLAZ", WSE: "PLZ/PLAZACNTR"). Plaza Centers N.V. is an indirect subsidiary of Elbit Imaging Ltd. ("EI"), an Israeli public company whose shares are traded on both the Tel Aviv Stock Exchange in Israel and the NASDAQ Global Market in the United States. It has been active in real estate development in emerging markets for over 17 years.