Orco loses €251m in 2009

Orco announced its results for 2009 this week, revealing it lost €251m for the year, but stressed that the fall was an improvement over the €391m it lost in 2008. Debt fell under the €2bn mark as well last year to €1.97bn. That’s unlikely to be calm down the activist minority shareholders led by Millenius Investments that are looking to unseat current management at Orco.

At the same time as announcing those results, the company published its new ten year plan to get back on track. Here’s the executive summary:

-In the short term, to complete its profitable projects in order to generate rapid cash
-In the short to medium term, to take advantage of the progressive thaw in the institutional property markets to sell non-strategic or mature assets, particularly in Germany, and to undertake the investments required for the plan’s terminal value creation and realization
-In the short to long term, to generate sufficient cash inflows to service the rescheduled debt
-In the long term, to position the Company for further growth, while providing superior shareholder returns

The key to the whole thing is, and always has been, the bondholders. Orco appears to be proposing now to pay them back, in full, over ten years. Here’s the schedule:

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