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Probus Estates PLC (PBE)

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Monday 03 February, 2003

Probus Estates PLC

Agreement with creditor

Probus Estates PLC
03 February 2003



          PROBUS ESTATES PLC (the 'Company', 'Probus' or the 'Group')



                      UPDATE ON DISCUSSIONS WITH CREDITORS



Further to the announcement of 19 December 2002 concerning the cash difficulties
being experienced by the Group, the Directors of the Company announce that on 31
January 2003 they concluded negotiations and reached agreement (the 'Agreement')
with the Group's largest creditor, Uni-Invest N.V. ('Uni-Invest').



The Group's obligations to Uni-Invest comprise a €16 million loan note bearing
interest at a rate of 8 per cent. per annum and a contingent liability arising
from a guarantee to a Spanish bank, provided by Uni-Invest on behalf of Probus
totalling €29.15 million, on which a guarantee fee of currently 7.875 per cent.
per annum is payable to Uni-Invest (the 'Existing Facilities').



Under the Agreement, Uni-Invest has agreed to extend the term of the Existing
Facilities to 31 December 2003 and to make available to Probus additional
working capital facilities.  In consideration of such extension and the
additional working capital facilities, Probus has agreed to pay Uni-Invest a fee
of €2.65 million on 31 December 2003.



The Directors of Probus have further agreed to focus on maximising the value of
the Group's assets with a view to an orderly disposal of sufficient assets in
order to repay all the loans and liabilities of the Group.



Lars-Erik Magnusson, the Chairman and Chief Executive, has been involved in
concluding the Agreement to secure the Company's future.  On its conclusion, he
resigned from the Board with immediate effect and this will enable him to pursue
his private business interests.  He has, however, agreed to provide advice and
assistance to the Board during the transitional period to the new management,
particularly in relation to the Group's casino operations in Mallorca and its
development properties.



The Board is in discussions with a new chairman and chief executive for the
Company who, it is expected, will be appointed in the near future.



A further announcement will be made in due course.


                      This information is provided by RNS
            The company news service from the London Stock Exchange                             

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