Developer Orco agrees warrants issue with Colony

PRAGUE, June 23 (Reuters) - Orco Property Group (ORCO.PA)
(ORCOsp.PR) has agreed to grant Colony Capital warrants allowing
the U.S. group to subscribe to an issue of Orco shares worth up
to 80 million euros ($111 million), the company said.

Orco was granted court protection from creditors in March
for a six-month period, and the central European developer said
in a statement on Monday the exercise of the warrants was
dependent on restructuring its bond debt while under protection.

The shares will be priced at 7 euros, and Colony's equity
stake should not exceed 30 percent, Orco said.

Orco had started talks with Colony at the end of April on a
possible 25 million euro reserved capital hike, with the option
of raising another 140 million.
(Reporting by Jason Hovet; Editing by Dan Lalor)
($1 = 0.7216 euro)