Confirming rumors that were already circulating last week, Orco has announced that the commercial court in Paris has accepted its safeguard plan, a move which allows the company to exit its creditor protection period. The company has pledged to pay off its debts over the next ten years, and says the lifting of protection will allow it to invest again in real estate.
Laurent Le Guernevé, Orco’s Court Administrator says:
“Orco Property Group’s Sauvegarde procedure has been innovative, as it is the first application of the new 2008 law revising the Sauvegarde procedure. It provided not only an efficient instrument for the judicial treatment of the group’s bonds, but also an amicable and consensual treatment of the bank debt, underwritten by the Group’s 180 subsidiaries located in Central and Eastern Europe. This Sauvegarde procedure, which included a “conciliation” process, concerned approximately 1.5 billion Euros worth of debt, and provided all stakeholders, the Group’s 2150 employees, its shareholders and creditors, with a balanced solution.”
The news just came out today. The implications are obviously pretty far-reaching, so we’ll be interested in people’s viewpoints on all this….