According to a statement issued by the company, the GSG loan standstill agreement between GSG Asset GmbH & Co. Verwaltungs KG (a subsidiary of Orco Germany) and The Royal Bank of Scotland has been prolonged until July 20. The loan value stands at € 285.7m.
The company is trying to gather financing from other banks in order to refinance the loan. An eventual long awaited sale of the Sky Office could also help in freeing some cash that could be used partly as a buy-back. We view the news as neutral.