Carpathian restructuring deal gets the green light
PROPERTY investor Carpathian said yesterday it has successfully completed a debt restructuring of €235m (£203m) with German lender Hypo Real Estate.
The transaction represents about 56 per cent of the total debt of £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: “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.”
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.
The company said its Polish assets Promenada and Blue Knight portfolio loans are to be fully cross-collaterised as part of the loan restructuring.