(186,01 CZK, -2,66%) Property Group issued a statement yesterday regarding the progress of the firm’s restructuring program. The company said it is preparing a rescheduling proposal for all bonds over 10 years, corresponding to the investment needs of its business plan. In addition, the board of directors has decided to convene general meetings for the holders of Bonds 2010, Bonds 2014, Warrants 2012 and Warrants 2014 on 16 December 2009. The meetings will decide upon certain amendments to terms and conditions. The amendments will allow the redemption of Bonds 2010 and Bonds 2014 at their full principal amount, with the redemption price being used as the subscription price for shares to be issued upon the exercise of Warrants 2012 and Warrants 2014. According to , if all of the Warrants 2012 and 2014 are exercised by the remittance of Bonds 2010 and 2014, the firm’s share capital will increase by a maximum of € 183m and bond indebtedness will be reduced by a maximum of € 234m. In a separate statement, announced it has ended all discussions with Colony Capital.
Our view: We see the news as neutral. The end of discussions with Colony Capital had been expected after the negative vote of bondholders on the initial restructuring plan in September while further steps to reduce the firm’s indebtness and the restructuring of warrants are in line with previous company guidance. had already mentioned preparations to reschedule bonds over a 10-year period.