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Probus Estates PLC (PBE)

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Friday 20 June, 2003

Probus Estates PLC

Update

Probus Estates PLC
20 June 2003

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

UPDATE



On 3 February 2003, the Company announced the details of an agreement with the
Group's largest creditor, Uni-Invest N.V. ('Uni-Invest') (the 'Agreement').
Under the Agreement, Uni-Invest agreed to extend the term of the existing
facilities available to the Group and to make available additional working
capital facilities.



In addition, under the Agreement, the Directors of Probus 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.



Since that time, Probus has appointed a new chairman and chief executive, Hans
Junge, who has focused on the potential disposal of certain Group assets in
accordance with the Agreement and on stabilising the Company's cash flow
position. Interest payments to all secured mortgage lenders have been made
current and certain tax arrears to the Mallorcan tax authorities have now been
paid.



Discussions over the sale of certain of the Group's assets are ongoing but, with
the exception of units at the Group's shopping centre development in Santa
Ponsa, Mallorca, there have been no significant disposals since the date of the
Agreement.



As a result, the Group is continuing to experience cash difficulties and, with
the co-operation of Uni-Invest, has entered into discussions with certain of the
Group's few unsecured creditors in the UK with a view to seeking their agreement
to extended payment terms.



The Directors intend that the preliminary announcement of the Group's results
for the year ended 31 December 2002 will be made, and the report and accounts
for that period will be posted to shareholders, prior to 30 June 2003.




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

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