Orco has won a three-month extension of its creditor protection status following a court decision in Paris. The company sought court protection for the first time a year ago and the latest decision means it has until the end of June to convince bond holders to sign up to a new deal.
The Sauvegarde plan, together with its proposal to creditors, will be officially notified by the creditors’ representative (“mandataire judiciaire”) to the creditors who will then have one month from receipt to express their opinions. Regarding the bonds, the Sauvegarde plan and the company’s proposal will be notified to each bondholder representative whom shall convene bondholders’ assemblies to record the bondholders’ opinions on the company’s proposal.
The Court will decide at its sole discretion whether to approve Orco’s proposed Sauvegarde plan. Throughout the extension until 25 June, 2010, Orco will remain subject to the Procedure de Sauvegarde rules.