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Carpathian restructuring deal gets the green light

PROPERTY investor Carpathian said yesterday it has successfully completed a debt restructuring of &euro;235m (&pound;203m) with German lender Hypo Real Estate.<br /><br />The transaction represents about 56 per cent of the total debt of &pound;417.1m within the group as at 31 December 2008, the company said, stabilising the majority of its portfolio, which was previously under lengthy negotiations. Chairman Rory Macnamara said: &ldquo;Carpathian will continue to review its debt positions very closely in the current market and focus on further stabilising its capital base over the medium term.&rdquo;<br /><br />Carpathian, which is focused on Central and Eastern Europe, said its existing facilities have been extended and its loan-to-value covenants have been suspended until December 2011.<br /><br />The company said its Polish assets Promenada and Blue Knight portfolio loans are to be fully cross-collaterised as part of the loan restructuring.