Atrium says bought back 127 mln euros of MTNs

VIENNA, June 18 (Reuters) - Austrian real estate group Atrium European Real Estate ATRV.VI said on Thursday it repurchased another 127 million euros ($177 million) of its medium-term notes due 2013 under its bond buyback programme. This brings the total amount of the notes repurchased by Atrium to 352 million euros in nominal value, leaving a balance of 248 million euros in issue, Atrium said in a statement.

It did not say at what price it repurchased the notes.

The trustee of the programme, Citicorp Trustees, told Atrium two weeks ago it had determined that a share buyback in 2007 by Atrium's predecessor company constituted a default event, Atrium said on June 5. [ID:nL51018288]

However, Atrium said at the time that Citicorp Trustee had not demanded early redemption of the notes. Atrium had also said it rejected the trustee's view and would take steps to uphold its position.

Atrium used to be called Meinl European Land and was linked to closely-held Meinl Bank before it was taken over by a group led by Israeli investment firm Gazit Globe (GLOB.TA).

Meinl Bank Chairman Julius Meinl V was arrested in April by Austrian authorities who suspect him of masterminding Meinl Land's share buybacks and defrauding investors through them.

Meinl, who was released on a record 100 million euro bail, rejects the allegations. (Reporting by Boris Groendahl; Editing by Dan Lalor and Jon Loades-Carter) ($1 = 0.7165 euro)