UPDATE 1-Carpathian restructures 235 mln euro debt

* Says making progress on other debt restructuring talks

* Says existing facilities extended until end-2011

* Says loan-to-value covenants suspended until Dec 2011 (Adds details)

July 2 (Reuters) - British property investor Carpathian Plc (CPTA.L) said on Thursday it completed a debt restructuring of 235 million euros ($331.5 million) with German lender Hypo Real Estate HRXG.DE.

The transaction represents about 56 percent of the total debt of 417.1 million pounds within the group as at 31 December 2008, the company 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," Chairman Rory Macnamara said in a statement.

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.

Carpathian added it was making good progress with other debt restructuring negotiations.

($1=.7088 Euro) (Reporting by Kumar Alagappan in Bangalore; Editing by Kavita Chandran)