Russian Real Estate Investment Company : BONDHOLDERS PUT A HOLD ON ACQUISITION OF FONTANKA 57. RURIC CONVENES INFORMATIVE MEETING ON APRIL 27

Mon Apr 23, 2012 8:24am EDT

* Reuters is not responsible for the content in this press release.

Press Release 2012-04-23

The proposed transaction in which Ruric would acquire Scorpio's share in Fontanka 57 is put on hold by the bondholders until the financial situation of Ruric has been solved.

On 14th March Ruric announced an agreement with Scorpio to buy their share in the project company for Fontanka 57 for almost SEK 88 mln (see press release dated 14th March 2012 at www.ruric.com for further details). This agreement was conditional on approval by the respective companies' board of directors and bondholders. The bondholders' votes were counted on Friday 20th April and the conclusion is that the bondholders voted against the transaction.

A letter to Ruric from bondholders owning slightly less than 50 % of all obligations clarifies that they are not against the transaction as such but are open to support the transaction in case the following issues will be addressed:

  • Better description of the conditions for the transaction, e.g. a resolution of a Shareholders' meeting is required to enable Scorpio's right to conversion under the agreement, which should precede bondholders' acceptance of the terms.
  • The date for the formal reply should be set after the Annual General Meeting on the 21 May, where possibly a new Board has been appointed.
  • A dialogue about Ruric's financial situation should be initiated and possible solutions be presented before the debt has been restructured.

As previously announced Ruric's management holds an information meeting on 27th April where the overwhelming majority of these issues will be addressed.

Russian Real Estate Investment Company AB (publ).

For further information please refer to

Adam Fischer, VD
Tel                          +46 8 509 00 101
email                   afischer@ruric.com
web                       www.ruric.com

ABOUT RURIC
Rurics strategi är att förvalta fastigheter i Sankt Petersburgs centrala delar. Härutöver skall Ruric även förvärva Ruric's business strategy is to manage real estate in the centre of St Petersburg. In addition Ruric shall also acquire real estate and implement value creating additional investments at attractive conditions. Through professional management and good tenant relations spaces of high class are offered to tenants looking for possible spaces in central locations willing to pay for it. Ruric offers primarily office- and retail premises.

Rurics Certified Advisor at First North os Erik Penser Bankaktiebolag




This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Russian Real Estate Investment Company via Thomson Reuters ONE

HUG#1604969
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.