According to a press release by Orco Property Group, the real estate company has signed a prolongation of the standstill agreement with RBS for the GSG loan. The loan was due in June 2012 but has been under a standstill agreement since. The prolongation until 21 December comes after the statement from the managemenet during the conference call after 2Q12 results that a syndicated loan for refinancing the project is under advanced negotiations and might be signed in December.
We think that prolongation was expected given that a refinancing loan is on the way in order to repay the existing loan. No terms have yet been given for the new loan. We view the news as neutral.