Perhaps this is what those market whispers about more goings-on over at Carpathian were all about.
Shares in Carpathian rose 8% to 19p this morning after the Central and Eastern Europe property investor agreed to a major debt restructuring deal with Hypo Real Estate – recently renamed Deutsche Pfandbriefbank.
The deal covers all of Carpathian’s loans with the bank, which in turn represent 56% of its total debt of €417.1 million. The existing facilities have been extended until the end of 2011 in return for an immediate fixed equity repayment of €8 million and the addition of Carpathian’s Poldrim project as asset collateral.
Together, the new debt agreement covers the company’s Polish assets, Promenada and Blue Knight; the MID portfolio in the Czech Republic and Hungary and Babilonas in Lithuania.